Ann: Quarterly Activities Report for Period Ending 31 March 2018, page-3

A welcome, realistic post, although a situation of considerable concern to holders. Even worse, the C1 cost is not the all in cash cost which must be well over $31 now. I have previously allowed for an approx. $8M loss per quarter and assumed cash in hand of $36M (all that was left after pay backs from the $115M note raise) which gave 1 year before the cash runs out. Without any other apparent strategy or sudden dramatic increase in spot price, LHM will have to go into C&M as soon as possible in order for PDN to have enough cash to weather a potentially long period of C&M. They cannot leave it until the death. Then, without any income, there remains repayment of the $115M note raise and the $90M CNNC loan(?) to contemplate. The likelihood of C&M of LHM is signalled twice in the announcement. Halving production in this March quarter has reduced losses by $4M plus. For the June 1/4 they are predicting production levels that will bring the loss back up to approx. $8M. I await with interest CNNC's reaction to C&M of LHM. See my previous posts for alternate outcomes.