pog is out of sync with costs, page-12

Well many of us thought that POG would go high enough. AUD did not help. Read once a good rule of thumb for a strong gold share is that cash costs should be half the POG and a mine life 10 years.

I would see the Aussie going down with a POG increase necessary for our miners to do well.

Offshore they can have cash costs lower, around, $300-$400 but sometimes no surrounding infrastracture or high geopolitical risks. So Lihir does well being isolated from population area where some risks are. The island may blow up one day, but that is another issue lol.

NCM have copper credits which are great.

So for mining in Australia I was hoping for the price of gold to go to $1200AUD (came so close!) based on average costs $600. I do not agree they have risen as high as $800 (in ramp up stage yes) but would probably have to use a higher average now.

So does not look great in short term but with gold, who knows. The returns will be great if it does hit the magical mark.

I do think the AUD is over-valued but then they have said that for so long now .... Have said gold is undervalued for the period we are entering but that has been said for a while now as well.