Ann: June 2016 Quarterly Activities Report-TGS.AX, page-61

Not sure why everyone is upset about the quarterly, am i the only one looking post 2016?

We will literally have debottleneck completed and cobalt feasability due by September.  Once these two catalysts are completed TGS will publish 2017 guidance based on debottleneck and cobalt results.

Also, @MagicSeven and @leec  i've been advocating some time that increasing copper cathode production shouldnt decrease c1 costs, because all c1 costs are variable, it will however improve the bottom line.

Few things to keep in mind though:

1. Power grid usage is up significantly, you may remember a few months back i was very upset with power grid usage being low. Now they are operating above expected levels, it means cheaper c1 cost for the long run will remain low.  This is evident through the reduced processing costs which fell from 63c to 56c (11% drop in costs)

2. Sulfuric acid prices are at the lows again. Its the second biggest cost after power, so it will definitely play an impact. Would be good if we can lock prices in like we did previously. http://www.sunsirs.com/uk/prodetail-236.html

3. They used lower copper grades than usual, perhaps they wanted to use this up before expansion happened. Also the heap leech was used less due to rainfall.  Mining costs were higher due to additional screening of 5mml material.

4. VAT was removed, this should be reinstated once copper prices increase and the DRC earns more revenue.

Point being that this quarterly was made out to be worse than it is.