breakdown of quarterly

It seems that people were disappointed with the quarterly, though i still have a feeling that the half yearly accounts (which were last year released in march) should bring some confidence back.
They will clearly show what Net profit(or losses) have been made and compare it with the previous year (simple i know, but alot of investors are lazy, and like to see these solid figures then make their decision)

Last years half yearly accounts to Dec2009 showed:
Net Profit of $4.8million an increase from a $10.5m loss the previous year.
EPS stood at 0.17c per fully diluted share

Full year report to June2010:
Net profit of $10.8million increase from $3.1million previous year
EPS of 0.38c per fully diluted share
Note Depreciation and Acclimatisation accounted to $12.1m (which are really 'positive expenses') -No actual cash outflow.

So the point im trying to make is that many investors decisions are influenced by figures.

So far from the quarterly.
12 months to June 2010 :
Revenue = $74.8m
Exploration costs = $6.3m
Development costs = $14.8m
Production costs = $41.5m

6 months to Dec 2010 :
Revenue = $48.9m
Exploration costs = $6.5m
Development costs = $7.7m
Production costs = $34.2m

Comparison of 12months (to June2010) vs 6moths (to Dec2010):

Revenue set to surpass 74.8m from previous year (+ve)

Exploration costs currently more spent in 6 months that 12 months last year (+ve if substantial increase in reserves)

Development costs, on track for similar figures as to last year, BUT as a % of total revenue costs have decreased from 19.8% to 15.7% of revenue(+ve)

Production costs, this is where the discrepancy is as a % of revenue it has increased from 55.5% to 70% (-ve)

This is evidence of the high costs of production per ounce, we still have half a year to turn that around, every other aspect looks positive. Yes there will be higher exploration costs, though this a 're-investment' in the company rather than a cost (technically is a cost, though can increase our reserves).

Half yearly reporting:
Judging by the Full year report to Dec2010 these are the figures quoted:

Revenue $74m
Cost of sales $45m
Gross profit $29m
and then you have your other expenses, net interest and depreciation & amortization.

From those figures it seems that both "exploration costs" and "development costs" are not included in the calculation of Gross profit, nor net profit as per figures quoted.

So potentially this is how the Half yearly should look:
Revenue $49m
Cost of sales $38m
Gross profit of $11m
less other expenses, net interest and depriciation (using half of last years figures for these items (as only 6months) = $8.6m
Net profit for 6months* = $2.4m

After doing that rough breakdown, i think the half yearly report will be an interesting read. The biggest upside is the increase in revenue, and i still believe, high costs today will be justified in the future.

It will be interesting to see what the company will have to say on this matter, and how the figures will come across, and how a decrease in net profit* will be justified from the comparable 6months last year.

Note: *Net profit figure is just an estimate using the quarterlies and information that i saw fit to be relevant.

I suspect the share price wont do much moving in the short term, though i hope the second half of the year will have alot more positive news to digest.

-Increasing production
-Increasing reserves
-Decreasing costs
-And hopefully an elephant in between all that