For those that seem challenged by the concept that you can actually become more profitable as your costs go up here is a simple diagram. That AJX are about at break even so soon, and the company has signalled increased margin % going forward indicates that good economies of scale are also kicking in already, so they are expecting the total revenue (TR) to accelerate whilst the total costs (TC) increases less rapidly as further efficiencies occur.
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- Ann: Appendix 4C - quarterly
Ann: Appendix 4C - quarterly, page-66
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