Quarterly comments, page-28

HC members I have a several posts & historical graphs to present regarding an analysis of June quarterly. After some analysis I have come to the conclusion IMO the quarterly was specifically written to impress but not to inform. There are just too many issues left unaccounted whilst raising even more questions that leave the non-technical holders in the dark and confused:

• There is no report on the volume of the recent slip on the east wall; no pictures either!

• There is no accounting for the fact that RED allowed silt and water to build-up during the C & M period that seems to have taken longer to remove than the previous 20+ year build-up.

• The Total Material Movement (see graph below) was actually a 3 year record but given they were working on the upper levels during the western cut-back the TMM was only about 40% of the earlier TMM achievement in Sept 2011.



• Despite this, the cost of mining per tonne is still alarmingly high at $6 (see graph below). There must be a very high fixed cost component in the mining contract that relates to minimum equipment usage. The average cost during the previous production period (June 2012 to June 2013) was $8.30/BCM (or $3.35/t) about half of the most recent figure of $15.60/BCM (or $6/t). Comparative mines in Asia (by TMM) indicate costs in the $2 to $6/BCM ($1 to $2.50/t) range.



The high costs of waste removal may give an indication of why RED is not willing to advise the slip volume; yet on HC we are being told this is a new look management team...............
Also one has to consider access to the slip volume; the northern haul road has been obliterated in a previous unreported slip incident; a bottleneck situation may lead to similar waste removal costs as described above in the June Q.

How does that code of conduct go again; Oh yes

MISSION AND OBJECTIVE
The Company aims to maximise returns to its shareholders from successful gold exploration, development and mining operations. To do this, the Company will:
• pursue its goals through safe work practices;
• conduct its activities honestly and ethically; and
• treat people with respect and dignity.