Hi Loki, remember they're selling gold significantly below the...

Hi Loki, remember they're selling gold significantly below the spot price until the end of next year. Gold prices received in the first three quarters of FY12 were $US 960, $US 1280 and $US 1418. They're not making much at those prices and given what happened last year, I'm surprised they made a profit at all.

Last night CGX outperformed, imo, because the market liked how they've fully expensed the SAG mill repair costs making a profit of $28m in the six months to June net of those charges.

Yes it's frustrating waiting for the optimisation study of the 10mt expansion. But 200kpa production appears sustainable for many years. And given they've recently ramped up their exploration with some very good drill results not reflected in their resource statement, even a small increase of head grade grade, say 0.1-0.2 gpt, will have a big impact.