Tantallon,

Maybe you should do a little due diligence before you start spouting off again.

Of course the cost per pound will be higher right now for several reasons.

1. During development of the mine they are processing the tonnage through the mill. though it is lower grade. This will increase the cost per pound but decrease the cost of developmental.

2. In March they processed 25,464 tonnes of ore 48% of the total for the quarter. In march they averaged about 850 tonnes a day which is a far cry from the 1800 they want to do at full prodcution. Even if all months for the quarter were like March the cost per pound would be much lower

3. The staff at the mines and mill are basically enough for them to process at full production! This will obviously bring down the cost per pound

so again we all need to wait for the 3rd quarter to really see where the cost per pound will be and I dont see any reason why it wont be between $3.00 and $4.50.

Your comment about

The increase in production will improve this somewhat, but with increased expense comes with increased production.

Doesnt make that much sense yes the overall costs will go higher but the revenue will be much higher and the cost per pound will be lower.

Another thing for the revenue side is that we have a hold back of 25% from xstrata that is not included in the quarters revenue eventually this wont matter when we are in full production in back to back quarters but right now it shows a lower revenue than what wer really earned (the fluctuation of nickel prices will have an affect as well)

So how much better would this quarter look if we didn't have the hold back of 25%. I know you would never think of this mainly because you are always negative on LBE...really easy to see your agenda