Question-and-Answer Session
Operator
Thank you. Ladies and gentlemen, at this time we will be conducting a question and answer session. (Operator instructions) Our first question comes from the line of David Talbot with Dundee Securities. Please proceed with your question.
David Talbot – Dundee Capital Markets
Good morning gentlemen. I am just wondering what sort of arrangements you’ve made as far as delivering into contracts at this point?
David Clark
We have what are basically production based contracts so what we produce, we deliver in a full, there is not a production quantity, limitation or obligation. It is simply whatever we produce is sold.
David Talbot – Dundee Capital Markets
Okay and you talked about monetizing non-core assets, do you have a breakdown of what you would consider a core and non-core asset at this point or are you going to try to keep that close at hand?
David Clark
I think it’s close at hand. There are multiple, it’s not just from a negotiating standpoint, there’s multiple considerations in there as we constantly monitor the environment moving forward, you know, which was do we want to go. There is going to be certain strategic decisions based on how we want to move forward.
David Talbot – Dundee Capital Markets
Okay. I guess as far as potentially starting up operations again, is there a certain threshold that you are looking for? I imagine you are not going to stir it up again just to break even but you’ll be hoping for significantly higher prices going forward. Can you perhaps comment on that?
David Clark
I think as mentioned earlier the breakdown of our existing contracts, obviously one is very favorable and one is very not and part of what we need to do I think is get a better contract mix. That is part of it so that we don’t have to produce again for half our production in the substantial discounts of the stock market, so that is a consideration, you know, what to realize prices and this also affects us as far as leasing and buying reserves because generally royalties are based on what your sales contract is. So one of the things we would like to get done in this period is just better our contract base and basically marketing has not been a major factor in this company.
It is simply unhedged. It’s gotten to these contracts to negotiate out of (inaudible 00:34:53) with the contracts but the degree that we can improve ourself and protect ourself through a down market to some degree. We simply take what the market gives us and again that has led to operational decisions that only pan out and you don’t even know how they come out until 12 to 18 months down the line.
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