worst case scenario, page-63

Systematic - I'd be interested to hear your views on how a scenario for CCU may play out if Magna doesn't agree to underwrite the upcoming capital raise? Also your view on what the capital raising sp price may be?

A word of caution regarding the assumed September production level .... up until recently, CCU has been announcing the production rate per month, however for September they announced record "sales" of silver. All we know is that 385koz was produced in the September-qtr and that 115koz of this was produced in July. We also have from the CEO:

21 August - "The ball mill is now operating effectively, and is treating oversize ore from current production as well as a portion of stockpiled oversize ore"

30 Sept - "the ramp up has been slower than expected ...... continued operating difficulties with the ball mill."

So we don't even know if September production was higher than August, nor do we know how much of this production was bolstered by the stockpile.


JD - I don't agree that CCU keep shareholders in the dark, I just think that they are reluctant to report bad news, and have been forced to report news that shareholders are not happy with. I totally agree that shareholders should vote down the remuneration report and any "incentives". The new CEO should be given an opportunity, but he's off to a bad start - he hasn't been able to resolve the production issues, and then made the rookie mistake of claiming all's well in August, but having to backtrack just one month later.

MJ - could not agree more that the SP is being supported ahead of the share placement. This is what makes me most nervous about whether or not Magna intends to underwrite it in the manner it has in the past.

GLTA.