heading for new low 60c, page-8

Item 4 might not be a cash outlay but it is represents a share of money previously spent (ie capital items) that the accounting rules state should be expensed over a number of years instead of being fully deducted in one year. ie it is valid to include this in the profit calculation.

We have had big increases in revenue and reserves, but the return to shareholders is getting worse. I don't know how they can justify the development costs over the next 2 years on these numbers. To run a company which makes $695 million in revenue such that it makes $13 million profit doesn't make sense.

I have been an investor in AGO for many years and find this very disappointing. JTang has a valid question in "what profit will AGO make over the next 2 years?".

It seems that now we can only do an infrastructure deal if we can get someone to buy 30-40% of Horizon II. FMG have said that the September deadline for an infrastructure deal is no longer achievable. How much longer are we going to be strung out on this? Remember the potential deals with Ridley - we were "in talks with interested parties" for a couple of years - and nothing happened, so excuse my skepticism when they say they are "in talks with interested parties".

I hope this has a happy ending, but I find the declining profitability to be very disturbing. It looks like we are simply not getting sufficient return from all the money we are sinking into developing these mines.