Ann: Half Yearly Report and Accounts , page-4

Hi danbradster

I need to brush up on my accounting, but from my point of view the ~$19m looks to be simply an accounting reserve (netted off against equity).

Later in the cash flows report the company states the effects of exchange rate changes on cash as (2,025,762) Dec 2011 v's (272,009) Dec 2010. page 11

Whilst Hedge income was 2,511,699 Dec 2011 v's 3,408,904 Dec 2010. page 13

So what they are saying is their exchange rate risk was partly hedged and as the dollar rose they received hedge income but this did not cover their entire risk exposure.

The cash position has been known by the market. And this was the primary reason the company has just completed the rights issue.

The next announcement due looks to be regarding Smokey Hills management change-over.

Gus