smashed, page-4

The fact they've reported total costs increasing from ~US$530/oz to ~US$750/oz has nothing to do with it? or on operating costs from ~$US350/oz to US$485/oz?

From 21/7/09 presentation:
"Production guidance for 2009 reaffirmed
280,000-300,000 oz @ cash costs of US$365 - US$405 / oz"

They missed... is it a short term blip or is the higher cost environment for OGC here to stay? For me, either the sp falls to ~$1.50 or cash costs fall back to with guidance range, and I'd see it as a compelling buy again, .

It's really simple...
OGC mine grades of ~2g/t, RMS mine grades of ~41g/t... and you really think they'll be almost operating at the same cash costs?... when RMS mine 20x less rock and mill 20x less rock to produce the same ounce of gold? The RMS cash cost of ~$420/oz is inclusive of ALL expenses (and RMS clearly implied this - what you might be confusing is that OGC are using depreciation to book capex whereas RMS are booking capex as capital costs)...

pre tax RMS net profit A$15million on ~20Koz.
pre tax OGC net profit minus gain on hedges was US$25.6million on 300Koz.

This equates to:
RMS total costs ~ A$400/oz
OGC total costs ~ US$705/oz or on exhange of 0.9 ~A$783/oz for FY2009.