Ann: Quarterly Report March 2013 , page-27

CPDLC

Thanks for adding to the discussion on costs.

After some more thought, I believe

1. It is only appropriate to use NPBT rather than NPAT, ie $USD48.078m

2. The correct figure of ounces of gold to use in the calculation is the sales of 55,446 because the extra amount on hand would not have been counted in the cost of goods sold to get at the NPBT figure.

3. The comprehensive income of US$56.014m is a misleading figure because it comes from a one off addition to revenue due to currency movements of $6.830m. These currency movements can also move against you and is just a lucky gain.

4. I agree that there were some factors in that year that increased costs, not sure how much weight to give them.

5. There are no doubt some hidden costs (such as exploration) which they have capitalised when perhaps they should have written them off against current income.

Bottomline cost look like - USD1658 - (48,078,000^55,446) = USD791/ounce in 2011/12. Have costs risen since then?

loki