 Today I have the pleasure speaking with Amanda Lacaz of Linus Corporation. How are you today Amanda? I'm good thanks Tracy how are you? I'm fantastic and we're delighted to have you because we're dying to talk to you about the debt amendment that you've recently facilitated. Let's get right into it and can you give our audience an overview of what you basically just negotiated. Yeah so what we've actually negotiated is actually virtually all elements of the amendments. The most important thing is that it's time. We've negotiated additional time through to mid 2020 on the JRA facility and the 30th of September 2020 on the convertible bond. As well as that we've significantly reduced the interest liabilities so the current interest rate on JRA is six percent it drops to two and a half percent. The current interest rate on the convertible bond is 2.75 it drops to 1.25 percent. As well as that we've changed the previously we had fixed amortization schedule for the repayment of principal on the JRA facility and now all of that is due at the end of the loan and will only make payments in the interim based upon how much cash we have in the business. So it's much more tied to cash flow of the business and it's recognizing the market volatility. So the most important thing is the time because as you know and as everybody who's observed the rare earth's markets knows it's the rare earth's market at present the price does not reflect demand. We expect that at some stage those two things will come back will normalize and at that time you know we're in a very good position to make to deliver a good outcome. Of course I understand there are numerous complexities in this deal. One writer commented that in addition to time that the interest rate savings might exceed 70 million. Can you talk to us a little bit about the numbers? Yes yes certainly the interest rate savings are around about 70 million and that's a combination of there is a portion of interest which is forgiven which is actually for the period from 2014 to 2015 that's on the JRA facility and then as well there's simply the savings in the liabilities based upon the interest rate over the remaining duration of the loan. In addition under the current agreement we actually have 50 million US payable as principal between now and the 31st of December 2017 and all of that has now been pushed out to the end of 2020. You know people might say well what have you had to give in return for this and so in terms of the things that Linus has needed to bring to the table and one of these is very important and our shareholders will need to vote on it on the 30th of November in our AGM is that we've agreed to reset the conversion price with the convertible bond to 10 cents per share that's still at something like a 40 just over 40 percent premium to the price that it's currently trading at as well as that we have granted a 10% warrants and an exercise price of five cents and we have agreed a new availability offtake agreement with JRA to ensure that we continue to supply the Japanese market with MDPR. So we think that it's actually a very very good deal for shareholders and we look forward to at the AGM we hope that the shareholders will vote positively for it and of course what I would really love to ask you because we're seeing signs of increasing interest in rare earths and a potential we believe that it's inevitable that there has to be an increase in rare earth prices Amanda obviously you have a better understanding of this than we do what do you think we as shareholders and new potential shareholders should anticipate say in the next six months to a year with rare earth prices. Oh look it's very difficult I think that I have actually probably done better picking when 35 is going to come up on the roulette wheel than I have been at picking when rare earth prices are going to change it's sort of the rare earth market is such a complex market and and we find demand is strong and you would have seen in our quarterly report that we continue to sell everything that we produce and we're producing more than we've ever produced before and customers are still wanting to buy from us and that normally would say therefore price should be should be strong. We would hope that this this amendment is a good signal to everybody that Linus is here to stay if there are any people still harboring a view that keeping the price low might actually lead to Linus's demise and we would we would hope that as said over time that the price will normalize and it will reflect the strong demand. You know remembering rare earths are important in a number of the technologies which consumers are demanding today. And of course Jack Lipton and I were discussing the demand Japan is the number two user globally of rare earths. Can you add anything else that maybe the shareholders you'd like them to understand before they go into the AGM and vote with regards to the complexities of this debt amendment deal? Yes I think that it is really important for shareholders to understand that whilst they are only being asked to vote on the single element which is the change in the conversion price to 10 cents for the convertible bond and we have included in the resolution also the warrants. They need our shareholders do need to understand that all elements of the package are interdependent and so therefore if they don't vote affirmatively for resolution for his on the AGM which which deals with the reset of the conversion price and deals with the warrants then all elements of the debt amendments will actually lapse immediately. And as indicated in our recent financial report for the year ended 30th of June 2016 and also in a number of our other communications to the market Linus continues to be marginally better than a break-even business on a cash basis and before financing charges and there is some concern about the ability to be a going concern if shareholders don't vote affirmatively but I'm pretty confident that shareholders will see the good sense and the logic of this set of amendments and they are significantly favorable to our business. And speaking of favorable your Q1 results I read you had 57.4 million Australian in sales receipts for Q1. Can you give us some of the highlights for your quarterly update? Yeah so I think it's quite interesting because when a business like Linus is in its startup phase every quarter's results have something new and exciting and different happening here. There's new equipment being commissioned or there's new sales. I think that now that we're at 100% of our plant commissioned and operating our quarterly updates now become much more about business as usual and about continued and incremental improvements and so this is the first quarter where we have had a full quarters worth of full production as for NDPR well actually we're operating at about 90% of capacity and and you know so I think that what you're seeing now is the stable output and our ability to actually serve our customers in a timely fashion. Okay well you know we of course anticipate the shareholders approving the debt amendment at the AGM but what should we anticipate perhaps in the next upcoming quarter once the AGM and the voting has taken place. So I think that after we've got this new debt arrangement in place we are really faced with now what other ways can we create value for our shareholders and so we're looking at a variety of different options there. Of course we can create value by continuing to drive additional efficiencies in the business and we have a very solid plan for driving the cost down further by improving the way that we run our plant and and the efficiency that we bring to work every day. We need to look at other new revenue streams you know there are ways as we continue to increase you know our production above name plate there are ways that we can actually take material at different stages through the process and potentially create new revenue streams and then of course there are opportunities to partner with other eras companies other companies and other parts of the supply chain and and find ways to create greater value for the business there. So it is not our plan to do this and then to sit quietly with our fingers crossed hoping that the rare earth price will go up we need to find other ways to add value to our business and that's what we will be doing. Well Amanda thank you so much for joining us today it was a pleasure as always. Thanks so much Tracy.