Comments on AGM responses, page-62

Hi spec.
It's interesting but on my rough calculations the haulage costs for RMS are about 1/3 of what ABU are paying even though RMS are hauling 300 kms from Kathleen Valley to their checkers mill and ABU hauls 77 kms. And of course you have to double that to cover a round trip.
I'm sure RMS said sometime ago it was costing them approx 1 gram of gold off their head grade per tonne in haulage costs.At that time gold was close to their part hedge price of A$1,570.So 1570 divided by 31.1 gms per oz equals just over $ 50 per gr.
Now Kathleen Valley ore grades 4.2gr per tonne. So it takes 7.4 tonnes of ore to produce 1 oz of gold.(Hope your still with me) If we divide 7.4 into our $50 we get approx $6.75 per tonne haulage as against the quoted figure of $20 per tonne by ABU. I know we are in outback Australia but the difference is substantial.
Now if we decided to mill the Buccaneer deposit at coyote our high grade ore is also about 4.2 grams per tonne. So to produce 1 oz it's going to cost 7.4 tonnes x $20 per tonne = $148 haulage.
Let's say we produce 40,000 oz of gold from Buccaneer by milling at coyote instead of on site the difference in loss of profits by the extra haulage would be 40,000 x $148. = M$5.92. every year.
Could we accept that?
What I found out in discussions with Directors after the agm.
We are currently mining Golden Hind only and this will continue for the next couple of weeks before they go back to Central. Two Directors also told me that the ore body at GH is widening as they go deeper, as we all hoped so just maybe
our next production report will be better.
By the way like others have stated Brett to me is very knowledgeable and I hope is appointed MD asap.
Sorry for the long rant, I hope it makes sense.
Jim.