Ann: Company Update , page-13

"Last week of December they made 15000 ounces??? This is terrible, unsustainable and highly unprofitable."

I agree the Dec qtr will still look pretty ordinary on the financials.

"Why are they still commissioning? I thought they said they had finished?"

The Dec 6 ann said they were done. From then to 9 Jan they have stacked 98,381 oz (is that raw or recoverable oz, don't know). You do realise they have to leach the ore after they crush it, yes? So 15,000 oz for last week of Dec represents ore processed months ago.

The entire Sept qtr delivered less than 18koz! So 15koz in a week is definitely ramping up.

Sure, this outfit is a long way from sitting comfortably yet. We need to see them get the costs under control.

But in terms of mining, rough figures, 100,000 tons a month, 56g/ton (reserve average), 65% recovery is 3.6 tonnes of silver a month, or 117koz/month. They're getting it out of the ground and turning it into bars.

No reason to expect them to be at 25koz/week at end of Dec, but also no reason not to expect them to be there shortly.

I expect to see some performance options vesting during the March quarter, when they hit 100,000oz in a month.