more upside

G'day all,

Due to the attributes of bonanza mineralization, good management and timing, DOM have been able to ramp up U/G production at Challenger such that the greatly improved profits per ounce of gold sold have masked the rapidly increasing costs of production felt throughout the whole industry.

Dominion are in the unique position of being able to capitalise further on these significant cost reduction achievements, by now focusing on the other side of the equation, namely revenues. By selling virtually all current production into a hedgebook, DOM have lost the leverage inherent in a rising price of gold, ie. their margins are not leveraged into the POG.

It is to be hoped that in this current environment, management sees fit to relax their hedging policy so that after the present contracts expire next August, we can see revenues maximised as the incremental increase in profit per ounce will flow directly to the bottom line, and that means prosperity for all, on paper at least!

Cheers ... WJ