toll treatment, page-14

Paulijbo470 - great post

When the toll treatment was announced, it was roundly agreed as a good idea...cashflow + mill ramp up. Commissioning a mill and ramping up to full capacity is a difficult business and there is story after story of problems, breakdowns and delays. Our mill didn't have these problems which is testament to the professionals working on the mill. MY only question, with perfect hindsight of course, is that on a dollar per tonne basis, if the mill did break down during toll treatment, we would not have been paid and we have a million tonnes of low grade ore within 2km's of the mill that could have been used as easily as the white Foil ore.

Take your point on the mining + milling, but there were only 5 categories of operating cash outflow...not sure that those I left out, ie exploration, evaluation and development would be included in cash cost/oz but happy if someone can provide a definitive answer. At the end of the day, we produced 12,660 oz for the quarter at $1034/oz cash cost = $13,090,440 and received $17,190,000 from our sales.

An interesting article on the use of cash costs here btw ---> http://www.gata.org/node/7709

You said it Papertigger - the tone of the sentence in the report about last time ever says is all.