re: Ann: Appendix 4E 2008 Annual Management ... Yes, a drop in...

re: Ann: Appendix 4E 2008 Annual Management ... Yes, a drop in net assets is expected when the both assets and liabities are reported in US dollars, and transactions occur in NZD and AUD. It helps cash costs but it shrinks the ENTIRE balance sheet, based on USD reporting.

As for net income, don't get too hung up. Like any commodity producer, especially those with hedges, focus on operating cash flow and yes, free cash flow, and adjust their size accordingly based on their hedges. For example, for 2009, I consider OGC a 200,000 ounce producer. And if you look at 200,000 ounce producers worldwide, even those with debt and hedges (i.e. Western Goldfields), there is still a substantial undervaluation.

All in all, impressive quarter - correction in stock price? maybe, shouldn't be, but maybe. Anyhow, first quarter is likely to be even brighter.

OGC really needs to clean up their balance sheet nonetheless.