view closes out remaining hedging, page-15

True financial position can be assessed reasonably well by reviewing last quarters financial statement and then referring back to Half Year balance sheet.

Key points I think relate to 19.6 million negative cash flow last June quarter which chewed up cash plus virtually all of the $12m debt facility.

So position at years end is quite clear and in line with expectations associated with mine development. Budgeted operating cash flows were as predicted and as well there was $7m of fixed assets included in the $19.6m of negative cash flow.

Balance sheet quite healthy at half year but debt level has increased by years end to around $12m. Plus any increase in short term creditors.

Cash at end of year only $3m plus.

Add the successful $30m capital raising through placement and retail offer announced early in July to boost funds for working capital and debt has the $12m debt covered and the budgeted $9.5m operational expenditure, $1m exploration for the current quarter. Plus there may be other capital costs associated with closing out the hedge book.

What is obvious is at the end of this quarter there probably would be only limited working capital of perhaps around $5m unless the $12m debt is refinanced.

I don't think management felt that comfortable with limited working capital at such a critical stage of the Bronzewing project. Of course eveything will be alright if the cash flow from gold sales is positive by the next quarter.

I feel that management is acting very responsibly and well supported by our major shareholders. Even if their are further hiccups next quarter what is being put in place safeguards the project further.

I have no doubt that the viability of Bronzewing mining has been well tested and that assurances from management that production throughput and grades are now meeting expectations are true.

The recent appointment of IMCs Jyn Sim Baker as a non-executive director earlier this month should indicate to shareholders that recent decisions are well thought out and in the best interests of the company and its shareholders.