Ann: Investor Presentation , page-5

So, 200k oz for Sept qtr, target 1 to 1.2M oz for FY2013.

1M oz => 800k oz in 3 qtrs => 267k oz/qtr => 1067k oz/yr.

1.2M oz => 1000 oz in 3 qtrs => 333k oz/qtr => 1333k oz/yr.

Hard to get a handle on the cash cost. According to the text in the last qtrly, the operations were cost neutral, however in the attached financial reports net operating cash flow was $2.388M in the wrong colour.

The forecast net production revenue for the Sept qtr (in June qtr report) was $1.025M. Going on 200k oz, that is around $5 net profit per oz. What price that was based on is anybody's guess. The hedged price was I think around AUD33/oz. If they were going off that, means cash cost around $28/oz. If it was based on 80% of the June 30 price (which was falling at the time) of around AUD27 * .8 = AUD21.6, then cash costs are around $16/oz. Like I said, hard to get a handle on cash cost. And as blake_jw mentioned, no mention of grid power happening which is supposed to significantly reduce the cash cost.

But that said, with the strong silver price, esp in the latter half of the Sept quarter, would hope that they could do at least $2/oz better than forecast for Sept qtr, which puts them up $400k on their forecast $1.1M net outflow for the qtr, which makes it about $700k depletion of the $2.1M cash on hand, so should be still fairly liquid, considering they raised an extra $650k in the September quarter.

The Dec qtr, based on PoS holding current levels and being about $5 up on the Sept qtr estimate would make for some 300k oz at $10/oz profit, or about $3M operating profit for the quarter. Look at it another way, AUD33/oz minus $23/oz cash cost would get the same result. Assuming the approx $2m E&E, dev and admin cost estimated in June for Sept qtr applies to Dec qtr, we could actually see a real profit for the qtr!

Net result, IMO no need for CR any time soon, unless they want to ramp up development expenditure. Given statements about keeping costs down, that seems unlikely.