email to maredi pl dra, page-45

In order to put together a NPV, you need to look at the timing of cashflows. Depreciation does not involve cash.

So, armed with that little tid-bit, $858 is the entire cash cost per oz, so no need to add any depreciation on top of that.

The way the capex comes into a NPV, is to reduce the cashflow by the amount spent on capital assets in the year it is paid for (usually the first couple of years of a project).

You then discount the "after capex" yearly cashflows by the discount rate, yada, yada...

I think that management failed to say the $858 is cash costs only.

Well, that's my 2 cents worth. Chill out fellas.

HB