I think tomorrow cash costs could be $650,but you and i wouldn't be happy with the ounces left in the ground,some of which would be sterilised(inaccessable),in underground operations,nor with the fact gold production would be half last years. That is a slow road to nowhere and those lower grade ores may not be profitable to handle at $1000 gold price when the price drops in the future.
So costs are what they are,unless there is either a need for them to be less(gold price collapse),or grades continue to rise,which appears to be the plan.
Conservative management,isn't going to risk promises,circumstances may make them unable to keep.
Don't forget to get $8-900 average for the year,the next few quarters will need to be LESS THAN THE LAST by more than $10.you could always work the average out on a stated 100k oz for a bit of a real cheer up,for an idea of what may be possible.
Cheers
fitnfam
DTYOR+DYODD
FML Price at posting:
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