activities report, page-7

watso was just doing some numbers, based on present prices, and compared against numbers in the quarterly - a bit simplistic but just to give some idea

ravanswood.

production of 35000 oz, of which 90% to be delivered into forwards - realizing $22m
the balance sold on market at au$870 - realizing 3m

total production sold for $25m, or $714 per oz

so at present gold prices, and last quarters production costs. the company now breaking even on a cash basis at ravenswood

golden pride

40% or 16000 oz of production sold ino forwards at $us 521 for $8.3m

60% or 24000 oz sold at market (us$800) or $19.2m

total us$27.5m or average us$685

on watso numbers, golden pride will produce a cash margin (ie excluding depreciation) of about us$250 per oz at todays prices - or a rate of us$10m per quarter

all is not lost for this high cost producer. watso cannot recall what the expected costs are at syama, but a stab in the dark would be $450 per oz. if and wnen production commences at syama, then there might be a margin of us$350 per oz, or about $80m australian dollars per annum (from syama alone) -

hedging should be a non issue in two years so after two years, the cash should be rolling in - and depending on the level of reserves at the mines , but watso can easily see $150m per annum in cash flow, in two years time