HC was talking down cash costs 2-3 months ago. He claimed that...

HC was talking down cash costs 2-3 months ago. He claimed that the costs were high because they were using third party ore and once this stopped the costs would come down. In the march quarter the third party ore stopped and it represented about (from memory 20%) of the ore used. The actual amount was given recently but don't have the number handy.

Of course the cash cost remained high @ $2.39 for the march quarter. It has been pointed out, rightly, that the cost remained high (for TMR) because the ore grade was low.

they are now saying costs will come down by the end of the year.

So this begs the question: When 2-3 months ago they said the costs would come down once the third party ore stopped, it suggests that either they didn't know they would be mining low grade ore in the near future (i.e. poor management and planning) or were being disingenuous (i.e. spin meisters).

If anyone has an explanation that doesn't reflect poorly on HC and the spin meisters then I'm all eyes and ears.

Also the idea that they sought to raise funds because the uptake of the rights issue was poor beggars belief. Firstly, they never waited for the thing to be completed. Secondly they MUST have had this in the pipeline to be able to have announced this on Monday. You can't organise these things overnight.

These blokes have cried wolf too many times. They no longer have any credibility IMO.