re: production downgrade Hi Vfrioni,I've got heaps of these too...

re: production downgrade Hi Vfrioni,
I've got heaps of these too and it was Anne that alerted me too.
I think they were saying the cash costs would be $A300/oz before royalty when 100k ozs/pa was the output so cash costs must rise on the lower output.
My rough cals for 2005/06 are:($Amil)

Sales revenue:
80,000 ozs Au @ $A575 46.0
Costs:
Cash operating costs @ $A325/oz 26.0
Amortisation - $A34mil/5yrs 6.8
Interest - $A30mil @ 8.5% 2.6
TOTAL COSTS 35.4
NET PROFIT,before tax 10.6
(with no tax for at least the first two years due to accumulated losses)
Market Cap. 1 billion shares @ 4.0c 40.0
Price earnings 3.8

Yes let's hope they find plenty more resources as they're probably trading at a fair valuation on projected profits for a five year minelife IMO and taking into account the risks of a successful production start-up next May.