the worm has turned, page-53

and the same factors driving down WA labour costs will be the same ones driving down the AUD, increasing the $A gold price.
Goldman Sachs is calling for our RBA to cut interest rates by 50 bp within 6 months, which will further pressure AUD

Cost were abnormally high last quarter, imo, due to the low 3.6 gpt grade of mined UG ore. Lower grades would've been anticipated because they were mining north of the dyke, but there was also higher ore dilution as explained on page 9 (mining widths of 9m instead of 4m).

In last year's June quarterly the company predicted that underground grades would range from 5.6 to 7.3 gpt in FY13. Provided grades return to this range in the quarters ahead, unit costs will almost certainly fall.