high costs - and how fml might become viable, page-27

$100/oz lower pog now than their average sale price last quarter. This is a problem given spend rate this Quarter including $3m splurge on Admin and the high exploration budget (which may turn out to be money very well spent, of course) is they now ripping through the remaining $200m of net cash. Burn this quarter may be $30m, or am I missing something?

Very sensitive to pog in this position and if further $100 pog correction then might dip close to or below the cash backing. But there is a limit to how far it can go below cash which provides some short term comfort.

They need to show market they are serious about cost control and not just relying on pog to save them.