Ann: Half Year Financial Report, page-19

I think important to dig into the inflation point a bit more. You’re right that local miner costs are going up per ounce but from what I’ve seen it’s not really due to rising underlying costs of mining/processing (ie unit costs per tonne basis).

I see it more about declining quality of mines in Australia, principally grade but also technical complexity that can come with age (ie Gwalia mining so deep). Even newer mines like DCN or GCY have had issues due to marginal deposits with grade missing from the resource models.

A lot of sustaining and growth capital is being spent by the bigger local players to try and offset these trends. Probably there was a period from 2014-18 where operations were run lean without huge investment and that is exacerbating current issues.

Sanbrado and Yaoure have grades far exceeding almost anything that could be found locally any more. I’ll take the higher grade even if it comes with higher ‘sovereign risk’, any day of the week.