thanks for the reply clearly there is going to be an improvement...

thanks for the reply

clearly there is going to be an improvement in cash inflows this QTr because of the backlog of product shipped early FEB of 22.5K, produced in DEC

Notwithstanding that short term improvement n cashinflows

If using the companies new revised mining plan forecast and guidance.
Assuming the base price of 680UUSD FOB is being received
Assuming the cash cost predicted for the entire year of 585USD/ ton AFTER Ta credits and BEFORE royalties are being achieved from 1st JAN (previous cash costs before royalties 824USd)
oyalties of 5 % as per the plan payable
excluding any additional costs of sustaining capex in CY2019
using new company 2019 guidance FX 73

It comes at best to just $61 USD gross margin per ton

	Column 1	Column 2	Column 3	Column 4	Column 5
0		rate aud usd	0.73
1
2		DEC QTR production
3		tons	USD	total	AUD
4	Gross inflow FOB / ton	1	680.00	680.00	932
5	cash cost after TA revenue	1	-585.00	- 585.00	801
6	Royalties payable	1	-34.00	- 34.00	47
7
8	Gross margin per ton	1	61.00	61.00	84

If the floor price is already being hit, imo there really isn't much to maintain the capital position of the company regardless of short term benefit of clearing the backlog of 22.5K, or new forecasted higher production when you consider sustaining capex from JAN, interest , and a raft of other expenses need to be covered from this margin.

Moreover,if the cash costs of last QTR (824USD reported), haven't fallen585 USD (as guided for CY 2019 under the newplan), then their ability to maintain the capital position will be even more difficult

Agree?

Also, I don't know if you noticed in the presentation the other day but A40 made a big claim it had an 8 year mine life on current production rates of 1.5MTPA,

Reserves support an 8-year mine life at current processing rate of approximately 1.5Mtpa however, there is potential for mine life and/or processing rate to increase as a large quantity of Inferred Resources await infill drilling.

Misleading don't you think considering that the current mining plan, contained in the same presentation states guidance of 1.8MTPA in CY 2019 and 1.9MTPA in CY 2020 - ?