A few months back I was using the cash cost provided by HGO in...

A few months back I was using the cash cost provided by HGO in their September 2011 Pres'n ($1.61 / pound including by-product credits).

But, for this thread I was looking at total costs (not just cash costs) publiished by HGO in their last Quarterly. So royalties, D&A costs etc are included.

If you want to work backwards from HGO's total cost est:

Total figure for May/June/July given by HGO as "next qtr" cash flow (provided in April Qtrly Report)
$32M

Less Admin & Exploration spend of $5M gives Production cash-flow:

$27M (appears to already include gold/silver credits as an offset)

less D&A (use April Quarter D&A as estimate for next quarter) of $8M

$19M

less 6c / pound SA gov't royalty. (about $600K)

$18.4M cash cost

Divide by number pounds Cu metal produced: (600,000t x 2200 x 0.8% Cu x 90.5% recovery = 9,556,800 pds Cu)

$1.93 /pound (If they run at full capacity & efficiency).

BUT: Last Qtrly report (p4) HGO included two largish credits (cost offsets) in this figure

* US$1.14 / pound Inventory Adjustment (as mentioned last post)
* US$0.49 / pound deferred mining

So the above figure of $1.93 / pound from HGO may also incorporate credits of some sort, that we might not expect in a vanilla flavoured "Cash Cost". No way to know until the detailed financials come out for this quarter.