"YOU CAN ALSO KEEP CASH COSTS UP BY NOT SELLING GOLD,or building...

"YOU CAN ALSO KEEP CASH COSTS UP BY NOT SELLING GOLD,or building surface stocks,or upping the spend on parts,or by bringing forward capital works as maintenance,upping exploration,development etc."

Unless I'm missing something, that is incorrect.

Cash costs are all costs incurred to produce an ounce of gold - wages, equipment, mgmt, recovery, refining, sales costs etc. Non-cash costs are incurred to attain commerical production: plant, development, exploration etc.

There is an argument with FML (The Mount) that non-cash costs are lower because, rather than delineating a reserve, they are digging it up and monetising it by putting it through the mill immediately... but stopping/reducing work on proving up reserves, capex etc will not reduce cash costs.

I try to look at things objectively even though I hold and would like to see a SP rise. The disappointment for me was the overspend (by about 10M). Maybe there was a good reason for this; if there was I'd like to know what it was.


Cheers,

C12