I believe that the intent is to ramp up underground mining.It...

I believe that the intent is to ramp up underground mining.

It will be 'interesting' to see the impact that this has on cost poz gold.

Underground mining is higher cost per tonne ore, although grade is probably higher, hence processing costs lower.

It is also hoped that they may start to process less refractory ore.

The Production Update has left me with more questions than answers. Also note the last sentance. It seems that costs for the June quarter will certainly be higher than the indicated 750, although, as stated, this will mostly be due to ramp up costs and redundanies.

My impression is that we are not out of the woods yet. Need another quarter to confirm that Wiluna is profitable. This seems to have been reflected in the sp today. I do not expect any significant change (ie -/+20%) in the sp next week.

With the USD gold price dropping, although so is AUD, those hedges and puts may become a good asset to hold.