Where did you get your assumption of current quarter AISC of $1255/ozs from - it appears to be somewhat optimistic to me. Remember that the AISC is inversly proportional to the quarterly production in that the processing/mining costs are mainly fixed and with the production being in the denominator are largely a function of quarterly production. For example AISC in Sept 20 quarter was $1,355/ozs with a production of 32,799ozs; since then labour costs have increased so how can AISC be $1,255/ozs in current quarter with only 28,700ozs you forecast. To get an AISC of $1255/ozs you need to produce 35,412ozs in the current quarter assuming that fixed costs are unchanged.
DCN Price at posting:
27.5¢ Sentiment: None Disclosure: Not Held