Ann: PRU AGM Presentation, page-37

Nordesmic

Your estimate for October of $1110 is consistent with the graph displayed at page 8 of the following presentation

http://www.asx.com.au/asxpdf/20141121/pdf/42twfnd38pymzp.pdf

If my recollection is correct, I think Autosime posted some details of a conversation he had with PRU, where he indicated there would be an additional cost of around $250/ounce for waste stripping during this quarter, but that this was likely to be partly offset by some mining cost reduction to be agreed with the contractor.

I do not know if there has yet been any cost reduction actually agreed, but if you add the AISC of $960 with the extra waste stripping of $250 you get approx $1200.

If the gold price drops down to around USD 1100 or lower then PRU would be operating at a loss except for the fact it still has a useful hedge in place in 2015. I think there is a good chance for the gold price to head down that way after the Chinese New Year, with a low sometime mid 2015.

I am tempted to buy some PRU shares for a trade on the assumption that the final gold price downtrend starts in Feb/March 2015 and there is a bit of a rally in January.

loki