Ann: Production Update December Quarter, page-46

For me there isn't really enough information to determine whether this is a good report........but there are things that make me cautious for the short term and what will need to be done to arrive at full production.

It appears things haven't gone to plan. Forecast Syama oxide production for the year was 90kozs and they achieved 34.6kozs in just one qtr, a step or two above expectations. On the other hand the sulphide was only 21.5koz and was arguable below expectations after the restart from the plant shut down and the fact that long hole stoping commenced in Q1.........With the ramp up of the project, the majority of the cost base will be in place without the corresponding level of production, so it will be an expensive qtr......Without the oxide surprise the qtr would not have been good.

So the questions for me are what was the gold in circuit movement, what were the movements to working capital and how much was posted to development costs???? ......Given the current, at best, break-even state of Ravenswood, and the unproven production from Syama sulphide , what is the scope to increase the level of borrowings?

Why has the production number been released early, and why has the Buy side been very weird the last few days?? Is a VWAP being defended?......The release of slightly too much positive information has me a little concerned there may be a raising to cover a possible shortfall to get to steady production....