noble debt down from usd54.5mln to 43.36mln, page-6

Maybe someone can clarify things for me but as I read their Quarterly it seems that their production costs are incredibly high. Their receipts were just over $34 mill and their production and admin costs are $31.5 mill. Right there that doesnt seem like a healthy margin...forgetting about their debt for a minute.

Can someone explain why their production costs are so high please??