Looking at it from a different angle, what might the recent NCM...

Looking at it from a different angle, what might the recent NCM PFS tellus about costs?

Well first their base case assumes US$1,500 revenue per oz of gold, which at 31.1 grams per oz, amounts to about $48 per gram. A bit below currentmarket price but am not sure if that is prudence or is theresomething about smelting, refining and final transport costs still needing tobe provided for after the final product leaves Telfer?

Anyway NCM also estimate that operating costs for Havieron ore being mined,transported and processed at Telfer will be in the region of $82 per tonne and(according to some regular GGP posters) this seems to be split more or lessevenly between mining cost on the one hand and transport and milling costs onthe other.

Assuming that these posters are correct, our mining costs are probablygoing to be much less so you might say max $10 per tonne for open pit mining atMinyari and (because we are nearer) say $35 for transport to and processing atTelfer thus making US $45 per tonne in total.

This includes toll processing charges which includes costrecovery on all capex etc at the Telfer Mill, i.e. on the basis that there isno other ore being fed to the mill – not from Telfer mine or anywhere else! Presumablythis includes the cost of the trucks as well?

Therefore any additional ore (e.g. from Minyari) should result in processingcosts coming down – as fixed costs per tonne are spread over a greater tonnage.We can be sure that NCM will be very keen to get Minyari ore processedat Telfer, imo and so these costs might well come down further.

Real back of anenvelope stuff of course, slightly less than GeoFiji calculates, solet us bump it back up to 1g per tonne and leave it at US$48 with some contingency included.