Ann: Chairman Presentation to Diggers and Dealers, page-12

re: Ann: Chairman Presentation to Diggers and... There are two ways at looking at the cost of mining the lower grades. Because it will allow extra tonnage to be shipped it actually helps lower the cost of producing the higher grades. The average of total production may not be higher at all or if higher then not much higher than the costs per tonne would be without that lower grade being processed. As a cost clerk in my younger days I was asked to do various costings that showed that if basic costs were being absorbed by the initial production what were the "marginal" costs associated with increased production. The end result was that even though the costs of the extra production were higher (overtime rates) it lowered the cost of the initial production and it was very much a case of extra profit at the end of the day.