BLK chart, page-199

I haven't digested all the announcements yet but the problems seem to have involved a fair bit of bad luck outside managements control.

I'm having trouble understanding how they got the AISC down form $2063 in the first half to $1158 in January. Surely the mining contractor wasn't able to gouge to that extent.

The much lower stripping ratio and much higher feed grade would have improved cash flow enormously but shouldn't have effected AISC unless they aren't spreading all the costs over the mine life reserve ozs. I notice $11.8m of mining costs was capitalised in the first half. That and the $2063 remaining AISC is what seems to have caused the near death experience and the current buying opportunity.

Does anyone have an understanding of how the reduction in AISC was achieved and more importantly whether it is here to stay?