Looming Depression!, page-29

Hi Tiger,

I have now updated my figures for the June quarter.

In effect:
1)
Q2/CY02 cash costs of production (not post-production through to delivery) were $323.
2)
FY02 cash costs were $341.
3)
Margin production was $1.7b in FY02 (and $433 in Q2/CY02).
4)
Production was 7.8m/oz for the year (and 2.0m/oz in Q2).
5)
Placer (through Granny Smith) accounted for 10% of margin generation, 6% of production and a $222 cash cost.
6)
Other lost cost producing mines were St Ives (Goldfields), with 533k/oz and $170m in production margins, for a $236 production cost ($297 in Q2). Pajingo (Newmont) came in at 278k/oz and $165 production cost ($172 in Q2), for a $108m production margin.
7)
Mining operations whose Q2 production cost deteriorated compared to the FY 02 average were St Ives FY02 average of $236, Q2 average of $297), Callie ($374, vs $313), Jundee ($380 vs $324), Paddington ($422 vs $383), Bronzewing ($422 vs $350), Norseman ($240 vs $127), and Groundrush ($356 vs $297).
8)
Mining operations whose Q2 production cost improved compared to the FY 02 average were Granny Smith ($167 vs $222), Ridgeway ($103 vs $158), Cadia ($285 vs $315), and Kundana ($215 vs $350).
9)
Mining operations whose production costs exceeded $400 included Super Pit, Unions Reef, Big Bell, Wiluna, Southern Cross, Jubilee, Sons of Gwalia, Bluebird (SBM, @$562), and Marvel Loch.

Again, the industry was dominated by strong returns on several mines, and by the concentration of profit in the hands of very few producers.

All the best in your trading.