I asked that question when I spoke to Warren Hallam at the AMEC conference in June. He said they would increase margins from here i.e. Sept. or Dec. quarter (actually he was a bit annoyed at my question as uninformed, but I'll take it from him as I know he shoots straight with me).
Their projections show a margin of at least $A400-600/oz which they are targeting. i.e. they won't develop mines to feed CMGP unless they can get around that. They also have some hedging to ensure they deliver at that profitability.
Not sure if the mill is Higginsville or South Kal. but one has feed from their own mine the other they are feeding with ore from the Cannon pit an sharing 50% with Southern Gold as a development project above effectively toll treatment for the upper part of the pit. Cannon is definitely profitable and
Southern Gold is building up cash.
I think the issue with the question, and the reason Warren took issue, is everyone keeps asking them the same thing, and they are saying and delivering a better result (margin) than historical, say last year.
I can't (don't want to) be more definitive then that.
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