A factor impacting on the OGC reported 2009 profit was the...

A factor impacting on the OGC reported 2009 profit was the delivery of around 100,000 ouces into hedges at around $NZ750 or half the current price. This translated into a profit loss of $NZ75 million.

Another factor is the treatment of depreciation. Whilst a non-cash item it goes into the P&L and a short mine life with high sunk capital really increases the negative impact on the profit. OGC have increased their mine life this cost will fall.

A simple view of OGC is that operating costs are around $US450 and the current spot gold price is $US1100 - with a 300,000 ounce production [no relining of autoclave] an operating cash flow of $US195 million.

Finally, the share price action on Friday on the ASX could only be an underwriter of the new issue unloading stock to offset the liability at $A2.18 when the US + gold markets tanked on the Fed interest rate move.

Trading in Canada was heavy at 2 million+ and a price of around $A2.34.