brazil currency going south, page-6

In one of the previous conference calls they said that labour makes up 25-30% of the cash cost so a fall in the Real has to be good from that perspective.

What would the other major costs be? Electricity probably a reasonable amount maybe 5-10% of cash cost (just guessing here). Presumably a falling Real is better there too.

Other diesel/fuel probably not affected so much given $US pricing.

Smelting/refining charges are a big one ($1.32US/lb previous report). Not sure if this would be done in $US or Real given the different off-take agreements with Brazilian and International smelters.

I'm not sure what currency hedging strategies they have in place now. I know the previous quarter there was a significant currency related loss but that was upon converting all remaining AUD and BRL into USD. Presumably that won't be repeated to the same extent in the next quarter.