gold on the rise, page-6

parrot,

cash costs were not US$900oz, they were ~ AUD 1117

simple as that. no hypotheticals, no US300, just ~AUD1117


so perhaps forget the rose coloured glasses and read the responses, AXM was not in commercial production in that quarter

AXM has not yet had one single full month of commercial production... how can they give you figures of commercial production costs over a monthly period when they have not yet had a month of commercial production ?????????



heres a hypothetical for you;

If i wanted to start manufacturing, say fridges, and to set up that manufacturing i had 3 odd months of development and streamlining and getting the operations working. Over that 3 odd months i spent alot of money say 19million and i produced 17000 fridges, that means each fridge cost me say $1117 dollars.
But i knew that for the next three months and the three months thereafter i could produce twice as many fridges for only the ongoing costs of producing them and not the initial development costs, say i knew i could then produce fridges for about $600 each.


Should i base my investment on the capital heavy initial 3 months of fridge making? when i was just really setting up, learning and banging out a few fridges along the way?

or should i use the maths on the next three months where costs will reduce significantly because all that start-up capital has already been injected ????