Ann: Altura Media Interview, page-98

1) Are the cost for September correct? (around US$310/wmt). If not what are they?

Yes they are correct.

2) If so, what caused the large decrease between July, August (high US$300s) and September (low US$300s) to arrive at the quarterly average cost of US$365/wmt?

The reduction is due mainly to increased production, which brings down unit costs.

3) The forecast for October was 20,000wmt. The actually figure was closer to 18,000wmt revealed in a recent announcement. Why was this so far off the forecast? How reliable are these forecasts, especially the low US$300/wmt costs?

Forecasts can be affected by a variety of factors such as grade, recovery, any unexpected ore characteristics, and success of improvement processes etc etc. Mining forecasts are subject to variations and we strive to be precise and we do our best to make these forecasts as accurately as we can, but there is a margin of error that can not be eliminated. We fully expect to be able to achieve the $300/t targets as we bring up production, improve recovery rates and increase efficiencies.

Good points. My email was more about the big reduction of near US$80/t as in question 2. As long as the costing methodology remains the same, a US$80/t reduction seemed huge and I had to ask. The production shortfall compared to projections for October also had me questioning costs. I'm hoping they are aiming for 20,000 wmt.