Ann: Primary Crusher Bearing Replacement, page-7

Hi Plough,

You numbers look a bit light.

I presume you know there was an expert valuation of future cash flow, complete with all the assumptions, attached to the notice of the extraordinary meeting late last year. A critical analysis of that might throw light on any differences..

The valuer was working on a copper price of circa $2.80 average and came up with the following annual cashflows after cap ex and corporate costs but excluding repayment of creditors and debt as it stood at Nov 17.

2018 $83m
2019 $48m
2020 $20m
Total $152m

If the copper price continues at the current hedged prices we will see a lot more cash than that.

Most of it of course will be tax free because of the carried forward losses and will be way more than enough to enable the company to distribute the $24m in franking credits to shareholders.

On the subject at hand, as others have said , gearbox failures etc are a natural part of the business and should be factored into the budget. They delay cash but don't destroy the copper asset.

The thing that makes or breaks us is the copper price at the time we have to sell.