co-o operations update - very good long term, page-11

Mike, just have a look at the cash flow statements. The C3 cost can be deceptive if you start including costs incurred this FY but the benefit will be derived in subsequent years.

My preferred was of looking at it, in FY11, I have total costs at $380/oz vs management C1 cost of $189/oz. In FY12, I have total costs at $525/oz vs management C1 cost of $261/oz. FY12 was an off year, FY13 has also become an off year, but long term, I'd expect total costs to average around $400/oz on 150ktpa. The margins are as good as it gets in the business.

London quote is at $1.49 equivalent today. It looks like the aussies are an overreacting bunch, personally I think, it's unforgivable to overpromise on 8 separate occasions in 2 years, leading to 8 downgrades... either you understand what you're working with or you don't. Sentiment is SELL on Petey HB, and BUY the mine itself.