the worm has turned, page-40

"Perhaps I am wrong, but it looks like total costs are actually higher than $1144/ounce because they have not given us details for depreciation and amortisation. I am not sure how much that would add. Somewhere between $50-100/ounce?"


That's right Loki, what's reported was all-in sustaining cash cost. The financial statements contain the D&A costs, which are very low compared with most other gold miners (due to Davis's ability of building operating centres for 10s not 100s of millions of dollars, and their disciplined exploration which has been mainly expensed).

The bad old days in this industry are over... i.e. XYZ gold producer pretending their costs are $600/oz then going back to market to raise funds every year or so, 'surprising' their shareholders. Companies need to generate free cash flow to fund their next development. That's been the SLR business model but it becomes very difficult at $1300/oz

As for FY14 production guidance, they need to complete the Mt Monger business review. As Chuk says, it will also depend on the gold price and how aggressive they can afford to be with their growth plans.