Quarterly, page-20

Ummnn.... The cash went into mining koolan Island. The stuff they were mining before the wall collapsed was 10:1 strip ratio. They were losing money hand over fist at koolan Island.
This is why cash outflows stopped in December after the wall collapsed.

Mystery solved aye?

I think it is people doing half assed research that are pushing this price lower. Seems to me that most people thought koolan was a cash cow when it wasn't.

Easy mistake to make because mount Gibson don't publish production costs so you have to do some hard work to make a reasonable estimate of costs at their various mines. I reckon extension bill costs about $30/ton excluding overheads. It is similar strip ratio to Solomon at fmg which is $20/t but Mgx have higher rail and shipping costs


Mount Gibson never reveal production costs. I think it is ridiculous but it is not a recent change so don't take it as a bad indicator for extension hill.