phone call from ipm, page-12

Mr Gordon,

I think most of IPMs costs are in oil, or USD.

Most of the major costs are actually effectively a % of the oil. The taxes, royalties of course, but also the diesel for their power generation, which I think is about half of their OPEX (excluding taxes/royalties). Diesel is the main item under materials or consumables in the accounts.

Wages and salaries the other major cost. I suspect a mix of USD,AUD and lira.

Worth noting that with the 2nd water reinjection well they have made a huge cut in the power/diesel cost, which will come through this half. Other CAPEX has probably reduced some of the other OPEX. Longterm no doubt the bureacrats will give them access to grid power.

Taken in isolation it's a screaming buy, but you can see why it's down on a day RIO and BHO are trashed 12 to 15% etc etc.

At this rate I might take COE's cash and buy 10% of BHP, LOL.

EL