Ann: Administration and company update, page-8

According to futures charts, spot price won't reach $30 until late 2021, a break even point for all in cash costs for LHM. Until then the ad hoc committee will start with 98% of current market cap of $80.5M and the remainder of the note raise of $115M after paying out $60M to Deutsche Bank and fees to KPMG etc. This cannot alone sustain the overall running costs of PDN. The original restructure, one year ago now, estimated $75M to cover running costs until late 2019. PDN will have become relatively debt free after this DOCA yet still owe $115M and, at the same time, be running up losses. C&M for LHM is a possibility. The futures outlook will make it hard to sell off assets. CNNC may understandably have not purchased the rest of LHM as they were not even prepared to pay the running costs of 25% of LHM under current circumstances. Should PDN recommence trading, the balance between gamblers' optimism and reality make the future sp hard to predict. I would need $45 sp to get my money back with my 2% retention.