Ann: Quarterly Activities Report September 2015, page-7

after reading the report, besides of the content, I felt positive about the more professional way of reporting by the management. They really try to inform their shareholders. Because they do so I get the feeling more and more that the past is behind us and it is only the future that counts.

About the content:
# the production surprised me on the positive side if you take into account the "traffic jams" under the ground because of the projects and the limited haulage capacity. So the 120 - 130.000 OZ for this year is feasible and perhaps they surprise us by producing 130.000 OZ this year;
# higher production will help to bring down AISC. the level of $ 850 after the projects is in the cards;
# the higher cash costs ($439 this quarter) were higher because of a new allocation method for dividing total mining costs. See for this the report where they explain that;
# the change of $ 8 mln. in the creditors/receivable accounts and there for the decrease in cash. I agree with the explanation given by somebody today that they probably paid some creditors in combination with some higher receivables (and therefore lower cash at hand). Management could have done a little bit more on explaining this. Perhaps on the AGM next month;
# the cut on salaries for this year of the management by 15%, although surprising it tells me that management is really trying to do the best for the company. I have not seen this much by other companies. I tells us something about the attitude of the management.

All in all I am satisfied by the way it is going now. The past is really behind us. The costs are going i the right way. Production is going to a higher level. The only unknown is the POG. But with a AISC of around $850,- in two years time the company will have enough buffer to withstand an even lower level of POG. If the POG is going to be higher (say around $1.250) then the company is very profitable and dividend is around the corner. Even the higher SP of 60 cents does no longer suit the company.