As these numbers are estimates, could it be the case of supplying numbers to allow for a minor blowout in costs whilst actually expecting to reduce costs and thus over deliver on the numbers supplied?
I know that if i was estimating these numbers i would want to under promise and over deliver. Also if cash constrained why increase amount for exploration? It would be wiser to constrain exploration expenses until cashflows improve, so my hypothesis is that they are not feeling cash constrained and happy to spend more on exploration. I also get the feeling there is a contingency factor built into the estimates this quarter and that they realised that in the previous quarter they over promised and under delivered which made some holders panic and sell, so this time it will be the other way around.Lets hope my hypothesis are found to be true. Lets hope the bank balance is at the hiher end of expectations.
Christopher
AJM Price at posting:
8.3¢ Sentiment: Hold Disclosure: Held
