I did not say they were exceptionally high. I said they were relatively high. By relatively high I mean that we fit into the group of higher cost producers - although we are not at the very high or extreme end of that group. others will start making losses before we will, that’s for sure. This is because underground mining is expensive given the volumes we currently do.
Take BHP which produces copper in SA. Their costs are $US 1.30 to US 1.80 per pound in SA. At Escondida in Chile, it’s even lower. They sit in the lower cost, high volume, long life producers group.
All the cost saving activity, although very important and welcome, is not likely to see us in the low cost producers group in my view.
Despite this, CU prices are very supportive at current levels. So that does not mean we are not in a good position.
Ann: High Grade Copper Gold Assays Extend Nugent Mineralisation, page-16
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