Ann: Change to Hedging Structure, page-92

Hey Jogo,

finding the AIC is trickier than it should be, though.... some honest producers provide it regularly. This includes non-sustaining capex, which all mines spend big on, but... don't always articulate.



AISC for the March Q was $1388 AUD.
Yet... when you add on the $33.7m + 6.6m + 2.8m + 5.6m = $48.7m (or, quarterly production of 85.6k ounces, which equates to an extra $570 AUD per ounce, meaning their AIC (all in costs) were actually $1956 AUD.

The Dec quarter was similar, with AIC around $1850 per ounce.

Its probably easier to look at the full year outlook.



$100m in exploration and growth capex.
365k guidance. $100m/ 365k = $274 AUD extra per ounce.
AIC of around $1575 (which is actually quite good for the industry, but... I believe it will end up being higher, considering their quarterlies for FY2021 to date (though they do have a lot of overhang with the extra ounces to be sold)).

I mean, they have actually spent to date, $94 on growth capex and $35m on exploration (total so far $129m).... hmm... that is a tad more than the $98m high end they expected, plus, we have not got through the June Quarter!

So yes, the hedged gold, is literally, losing RRL money and has been for a long time.

As I mentioned, this will only be pushed higher in the near term by Tropicana, which has both high AISC, and lots of non-sustaining capex. The peak, I am guessing will be near years end... for all operations overall.