Costs can only go downhill from here as people lose jobs. Contractors are forced to be more cost competitive. Double bonus if AUD keeps falling. Inflation is not too big of an issue as CAPEX has been spent.
On a side issue, does anyone think the costs will go up (but ounces produced a lot higher?) I say this because i noticed the presentation said that we will be processing a lot of stockpiled material for FY14 and FY15. What i can't find is the grade of it so i am going to assume it is the hedged low grade. (Slide 8 and 9) http://hotcopper.com.au/announcements.asp?id=672746
I am unsure how the cost accounting works for stockpiled material. The good thing is that it is "stockpiled" so mining costs already incurred. Mining is half the cost/oz.
SLR Price at posting:
41.5¢ Sentiment: None Disclosure: Held
