Ann: Pacer and Silver Lake Resources Settle Dispu, page-16

re: Ann: RDG: Pacer and Silver Lake Resources... Actually, there was a clawback on the negotiations of $5m - it wasn't just terms of payment.

If you read the update on 4 April SLR discloses that payments to first gold pour where $68m with a further $7m expected for a forecast total of $75m.

The total cost looks like it will be $91m - a $16m blowout. Yet RDG state the dispute was for $21m. The difference of $5m is the amount that was clawed back.

Also, the reason the cost of production and cashflow is so high is easy to explain. They have been building the Muchison plant and also they have yet to reach capacity at Mt Monger.

When Murchison and Mt Monger start operating at full capacity and combined with the merger savings cash production costs will decline considerably - not to RRL levels - but significantly lower than now.

SLR earns a reasonable margin at $1300 an ounce - with gold rallying, as long as it stays around these levels, cash and profits will be increase significantly.

So now the major CAPEX has been incurred the cash will start flooding in...of course it might start going out the door again if they move straight into developing Great Southern.