lets compare apples to apples, page-6

morning all,

hi fitnfam, and welcome back cw,,

I still remain terribly confused by all the talk about high cost production.

fml the business is steaming along - almost by anyone's measurement.

If we didn't spend about 1 $mil. a month on exploration, I guess we would have cash costs around mid $600's p/oz - if we didn't develop - I am not sure but that $600's p/oz would be lower in the hundreds again -------------

who would be happy with that?

Cash costs of say $400 to $500 per/oz.

Sounds good.

But -

you wouldn't have the Mount coming on line with solid production with great grades.

And,

You certainly wouldn't have a Treasure Island.

Nor would you have rigs drilling away at other great targets.

So, with cash costs of around say $450 per oz ----

what in fact would you do with the cash ?

I note telstra sp rocketed yesterday because they have grabbed more market share - and that's why the market liked it ------
but they didn't think that the cash cost (about $970 million) was a problem in getting those extra customers did they?
So why do we think that paying a few hundred bucks an ounce extra is not worth finding elephants and getting production from 70,000 ounces a year up to 230,000 ounces a year in a rising gold market?

have a great day

Pinto