Ann: 70% Increase in Ore Reserves at Nullagine, page-10

Hi Flaming feel free to break whatever news on Moy you like and thanks for providing the charts.

But I am quite comfortable with the company’s reserve upgrade in 2018 and would debate that it was considerably above its depletion rate for the year - 250K oz against 98K oz.

I also note that Bob Moriarty has been pretty quiet on Moy since his Employment Agency comment. As I have previously posted Bob is/was a big fan of Novo Resources and they were reportedly pretty keen on getting hold of Moy’s production facility (cheap). But that opportunity has passed - so maybe there are some sour grapes there. For the record Novo is currently at about 28% of its sp peak from late 2017.

And if Moy are to deliver in the middle of their production and AISC target range in 2019 that would see 95K oz delivered at AISC of $1335 per oz. If average gold price remains above $A1800 in 2019 (currently $1835) even with 40% of its production hedged at $1715 this will give Moy a comfortable production margin of over $450 per ounce or around $43 million in free operational cashflow.

Also if in 2019 the company can deliver another net increase in reserves of 150K oz as per 2018 then this will increase the mine life to above 5 years.

I am pretty comfortable with the above conservative scenario and won’t get too panicked by charts just yet.