redback...reserve ann due soon., page-4

- They've only explored a portion of the 70km sqr of land they control.

- RBK's est. high production costs of US$200/oz make it considerably more leveraged to a rising gold price than most other producers.

eg; Cash margin at POG of $US300/oz... (300-200) = US$100/oz

Cash margin at POG of $US400/oz... (400-200) = US$200/oz....ie. double!

Cash margin at POG of $US600/oz... (600-200) = US$400/oz....ie. double again!



...RBK's a type of perpetual call option, with the undelying being POG !!