Blackburn Its a pass at least in my view - its always hard to...

Blackburn

Its a pass at least in my view - its always hard to tell the exact cash balance due to pricing. MGX was always going to be up against it with the low price in Dec-Jan. Because MGX pricing lags a month it was going to get the worse of Dec - also the company did weight its sales to the first half as well.

Couple of other points:

1) They've got quite a few tonnes of crushed and uncrushed ore that at $40 a tonne may fetch close to $20 million - this could be realised in the Dec quarter after the mining stops in the Sept quarter - so there could be a bit of cash harvesting there.
2) the business interruption insurance claim has now been lodged so there may be something to look forward to there sooner rather than later.
3) They don't disclose how interest on the term deposit is paid - if its monthly or quarterly fine, but if the timing of the interest payment is longer then there may be volatility there i.e. if its paid 6 monthly.
4) the contingent liability is down to $20 million from $26 million - so at that rate it will be down to $8 million at the end of the September quarter when the Ext Hill mining is expected to be completed.
5) If they do go ahead with Iron Hill I'm hoping that the contractor costs will be lower as the market there has got a lot more competitive since the Ext Hill deal was signed.

Tokyo - thanks for posting info on the conference call - look forward to anything more you may want to Post.

Djingo - costs haven't increased from $40 - they decreased from $50-$54 to $48-$52. i.e. $2. In other words with IO in the high $50's after discounts and converting to AUD they should be in the money at current prices.

Still wish they would do some capital management whether it be a buyback or a dividend.

Cheers