Ann: Quarterly Activities Report, page-27

Numbo (b is silent) thanks for your response. (all tongue in cheek) But seriously we have a project still in DEVELOPMENT. How do you expect them to continue to expand the mining footprint? Cannot do it using their Frequent Flyer points. Your net effect calculation is meaningless - its zero out of ten in accounting 101- at this stage in mine development. During the quarter the evidence is that they strengthened the Balance Sheet organically. Thats very good for a developing mine. The half year balance sheet as at 31/12/18 will make for much better reading when it comes out in late Feb/Early March 19.

Be concerned about profitability - not cash. They collected 38.31 for the quarter - match that against the site operating costs 26.75 + corp costs 1.81 - assuming the flows of debtors and creditors between opening and closing is similar and they are not sticking invoices in the drawer at 30/9 for the next quarter - thats almost a 30% gross profit on sales excluding one offs before EBITDA. Thats pretty good going considering we are developing and settling down the grind and processing and transitioning from open pit to underground. We are not going to see any more cap raisings - thats what this quarter tells us.

We were assured by MD during the conference call discussion in response to a question about the AISC that we are heading into the higher grades when we will see start to see some payback in the capital investment. Also when pushed MD confessed he is hopeful of still higher recoveries. I get the impression Mr Junk is very much an 'under promise and over deliver type of guy'. Unlike AW and Challenger we are not grinding out nice road base.