re: News: Cobar Consolidated's Ian Lawrence, ... Notes taken...

re: News: Cobar Consolidated's Ian Lawrence, ... Notes taken from the interview with Ian Lawrence:

Regarding oversized ore stockpile:
- Significant amount of ore in stockpile : 400,000 oz - worth $8.5 mill at current price of $23.4 / oz

Regarding current performance:
- Currently averaging at 100,000 oz per month without ball mill
- Silver production in April - 111,000 oz of silver, best month so far.

Regarding ball mill:
- Ball mill on target to be installed by end-June
- Capacity of the ball mill is 50 tonnes an hour depending on ore quality that we're processing at any one time
- Likely to take 2 to 3 months time to stabilize the ball mill operation (gelxi: means by September 2013)
- Target after ball mill installed: 200,000 oz per month
- Actual will vary according to ore grade, a function of the production schedule at the time.
- Ball mill won't replace log washer. Because of its clay nature, will continue to be processed by the log washer. After being processed by the log washer, oversized material, harder material will be treated by the ball mill.

Regarding meeting debt repayment schedules and working capital (gelxi: in other words, to keep Cobar alive) while ramping up production with ball mill:
- Short-term capital requirements $12.2 mil
- Restructured Cobar silver hedge book to realize $5.1 mil.
- Negotiated 6 month deferral on debt repayment project finance facility with CBA

Regarding proceeds from new injection of funds via capital raising:
- Proceeds will not be used to immediately repay all of bank debt.
- Proceeds will only be used to meet scheduled debt repayment and working capital.

Regarding capital raising activity so far:
- Couple of good signs from Capital Raising activity so far:
1. Not been large volume of rights trading - indicating current share holders happy to take up offer.
2. Under fairly poor market , still traded above 13c. - which was the offer price

Regarding hedge book position:
- 500,000 oz $29 / oz
- 900,000 oz $24 / oz (gelxi: more precisely $23.75 / oz)
- Deliverable at 180,000 oz per quarter

Regarding exploration program:
- In summary: Discovered significant silver footprint around existing mines.

gelxi Looking good to me so far. But Paul Bibby had better take over the baton well. He had a mix of good (Oceanagold) and bad (Range River Gold) performance as CEO before. I would also like to know about the current production cost / oz.