Ann: Quarterly Report September 2013 , page-4

I would add that they need to curtail their admin expense - $7m this quarter ($28m for a full year, I suppose), is far too high.

Exploration expense of $8m in teh quarter is not needed given they already have a reserve - at least this should be halved. Other companies are doing likewise.

Note the $11m paid for past borrowings. This would be their Red Kite loan which ends in December 2014. They will need to make a monthly payment which may be equal to as much as 2.500 ounces of gold per month.

Also note that as they run down their cash balance their net interest expense will also rise (on the the USD250m 5 year loan), because interest on cash holdings will fall.

Just me being surprised by this stinker of a report.

And if they keep marching to this tune expect a capital raising in 6-8 months time.

loki