pog...poo, page-21

The annual report says the capital cost for Mt Morgan is $30m (Phase 1). Operating cost is extremely high $650 per oz. Cash costs will be north of $700 and total costs well over $800 per oz I'd say (450,000 oz production over 12 yrs).

To improve costs they are implementing a Phase 2 strategy to "reconfigure" the project, including drilling to increase the resource base, process revaluation and economic remodelling, as well as metallurgical work to extract copper credits subject to government approvals etc.

All this costs money Jeff. $50m (approx) capital raising is what I heard and makes sense. Management are straight shooters and I like them. They could have told me $30m but gave a more realistic overall estimate I reckon.

Rowingboat.