Ann: Quarterly Activities Report , page-11

Based on information provided to date, the steady-state operational costs of the mine should be about $US700M per annum or $US175M per quarter. For the Sept'13 quarter, KML need $US200M on top of the IO revenue (say conservatively 1.7mt*$US100=$US170M) or about $US370M to operate which is more than double the forecast cost requirement for steady-state production! Get ready for a HUGE operational cost overrun when we finally get to see these costs!! DYOR. sdo