Pellet Price, page-149

Hi Monty, I liked your post and the sentiment of focusing on the cash flow.

The focus on earnings is due to the potential amount of any dividend.

Having said that I cant wait to see the cash flow from operations figure in the annual accounts.

The mid year report gave some details on tailings dam and the mill.

"South Deposit Tailings Storage Facility (SDTSF) is in a near completion stage with final approval being sought. This is a significant project for operations at Savage River as the SDTSF will provide sufficient tailings storage capacity for the remaining life of the mine."

Also in the report ,was the details about the mill.

"The second Autogenous Mill Shell was replaced and commissioned successfully on plan. Opportune maintenance was undertaken during these shuts to support higher production rates in the second half of the year."

The mining fleet was replaced not long ago, so it should be ok, for the moment.

However, it is not clear from the various reports as to capex on other projects.

Reporting from the directors is the bare minimum to meet compliance standards. it could be a lot better.

Southdown needs to be either sold to MGX and a cash distribution made to shareholders and the proceeds distributed to shareholders, as the value is not reflected in the share price or the project developed.

They directors need to let shareholders know what the plan is for Southdown. This three line token explanation in the annual report is unacceptable.

A dividend policy for the company would be good. Why they need any cash is beyond me, as most entities would just run a loan facility and manage cash flow through that. A line of credit facility of $50m should meet any contingencies. Holding onto cash in this day and age is not prudent, its dumb. Trump is devaluing currencies at a rate of knots, so why would anyone want to hold cash or deposits. Put it into projects/reserves or resources.

Either spend the cash on a project or return it to shareholders. GRR is not a bank or repository for cash, as the returns on cash are most probably negative in real terms.

Just my 21.5c worth.