RJ on Full Capacity Sorry about the crappy formatting, but it seems the best Stockhouse allows Troubleshooting En-Route to Full CapacityFrom our discussions with management the mill is currently operating at close to 70% of design capacity (35,000 tonnes/day). While progress has been slower than management had hoped, the challenges that must be overcome to achieve 100% capacity appear resolvable, and we have confidence in management’s ability to find solutions in a timelymanner. Most areas of the mill are operating well, including the crusher, secondary grinding, and the flotation circuit, and so far the head grade reconciliation has met the expectations in the mine plan. The two primary challenges currently being tackled are:? 1) Undersizing of the grate openings for the SAG mill are limiting the ability to move ore through the SAG mill and thus constraining the throughput capacity. The company has been switching to grates with larger openings, and this process is ongoing. Additionally, the durability of the grates supplied thus far has also been sub-standard, causing some of the grates to crack. The company has ordered thicker grates to overcome this durability issue. In our view, the cost of grate replacements is negligible, and measure in the hundreds of thousands of dollars outof a mine capital cost of ~$450 million, and these are relatively small components within a large milling facility. Exhibits 1 and 2 are pictures of the grates, Exhibit 3 is a photo of the SAG mill, and Exhibit 4 is a picture of nearly the entirety of the milling facility.? 2) Operating a brand new 35,000 tonnes/day milling facility involves a learning curve for the workforce in the mill, and the management team is now optimizing the workforce practices and policies and providing additional training. For example, while plant shutdowns to address major issues are common in the industry so far the experience at Copper Mountain has been that shutdowns during the ramp-up phase are occurring too frequently, and in some cases unnecessarily to addresseven small problems.