Ann: Quarterly Activities Report, page-5

Elze

Like you I have not got very deep into this one, except that I listened to the webcast on the quarterly, which you have yet to do. The CEO was asked about the cash position and he said they reduced their accounts payable by around $15m over the previous quarter, and this was the main factor in the cash balance not going up a lot. The new level of accounts payable seems relatively low for an operation of this size when compared against other goldies. There may have been other reasons as well.

It is worthwhile to listen to that webcast because it indicated that there may be future costs to be incurred that were not incurred in the last quarter (eg waste stripping and village resettlement).

My brain is not functioning too well today (maybe it never really does any more) so I have not gotten to the bottom of what their AISC means - ie if it is sustainable. Much of the improvement is due to the higher level of production which has reduced average costs, I suppose.

Maybe others such as Nordesmic and Autosime may tell us their views on the report.

loki