excellent announcement - future looking great

Sales revenue from the sale of zinc, lead and copper concentrates for the half year ended 31 December 2010
was A$90.9 million (31 December 2009: A$116.6 million). The average zinc price realised from the Mt Garnet polymetallic plant half year was US$0.95 (31 December 2009: US$0.84) per pound of payable zinc.

The average copper price realised from the Mt Garnet facility was US$3.50 (31 December 2009: US$2.61) per
pound of payable copper. The average foreign exchange rate for the half year was A$0.95 (31 December
2009: A$0.87).

The zinc cash operating cost after by-product credits for the half year ended 31 December 2010 was US$0.79
per pound of payable zinc (31 December 2009: US$0.48). The copper cash operating cost after by-product credits from the Mt Garnet copper plant was US$1.67 (31 December 2009: US$1.36) per pound of payable copper.

Consolidated cash on hand as at 31 December 2010 was A$60.0 million (31 December 2009: A$18.6 million), including A$37.2 million which is consolidated from Mungana Goldmines Ltd. Receivables as at 31 December 2010 was A$19.9 million (31 December 2009: A$20.7 million). Cash flows for the half year were negatively impacted by the large build up of concentrate stockpiles at 31 December 2010.


As at 31 December 2010, the Consolidated Entity had 12,687 tonnes of concentrate stockpiles on hand and yet to be invoiced. The concentrate stockpiles consist of 1,617 tonnes of zinc concentrate, 684 tonnes of lead concentrate and 10,386 tonnes of copper concentrate. These stockpiles have a realisable value of over A$25 million based on closing metal prices as at 31 December 2010. The majority of these concentrates will be shipped during the March 2011 quarter.

Payments for plant and equipment for the half year was, A$11.1 million of which A$10.3 million related to the
Thalanga plant upgrade to enable it to process both polymetallic and oxide ore types as well as primary copper ore from the Vomacka project. During the half year the Company made a placement of 33.3 million shares at 60 cents per share to Prosperity Steel United Pte Ltd.