Ann: Quarterly Activities Report, page-22

Hi Folks
did a quick reconciliation of results to confirm margins and based on accounts payable reduction margin per oz is approx 290 per oz . I then spoke to company to under stand what the extra mining and resettlement costs may mean in additional costs and was advised approx 150 per oz , but that point was made mining costs discussions may see most of this recouped from a fall in mining costs .
If I assume half of this cost will be recouped we can estimated AISC of approx 1050 going forward . Now even if gold fell to 1000 , the hedge would see a realised price of 1210 due to 70k oz sold at 1600. This would see a small margin over 2015 Specifically as credit note would see a reduction on taxes resulting in another 10m in cash flow. Importantly if gold averages in the 1300-1350 range as many analysts predict then PRU will realise a sale price of 1400-1430 which would result in cash flow of 75-80 million . Therefore in my view pru has some strong downside protection if gold falls , but more importantly if gold stays flat or increases slightly then PRU will generate serious cash