Hi Strauss, Without addressing Bdell's figures directly, from...

Hi Strauss,

Without addressing Bdell's figures directly, from the AGM I attended in May, Brian Johnson explained that working with a $1200/oz gold price and with fulfilling the requirements of the hedge, PGI expected to make an operating profit of US$20m for this financial year (which is the calendar year) and from that apply US$10m to the debt.

PGI expected to pay off all of the debt over the coming 2 years.

Of course with improving gold production levels and the rapidly rising gold and silver price, plus now the opportunity of paying the debt off over a few years, we need to revisit the financials and the budget for the next couple of years.

This is best left to Bdell or Paul.

But you are right, average production costs in May stood at about $700/oz or less but with improving production figures this average cost figure will be coming down and the margins will seriously improve in August when the low prices imposed by the hedge will come to an end.

T