I can see why AK only told the punters the pre royalty and...

I can see why AK only told the punters the pre royalty and depreciation cash cost per ounce

at $27 ounce QLD gov royalty is $1.21 per ounce

Using known information the mining CAPEX is written off over 6 million ounces considered likely by Grigor. OK if they get a bigger reserve we can spread it out more. But thats the mine life currently estimited so thats what we do. Hang on they don't even have a mining reserve, only a resource...not to worry she'll be right (CCU reserve is 30% of resource)

anyway thats around $2 an ounce

and then we have corporate overheads, directors fees. bit of interest on the loan ,exploration spend. lets say another buck an ounce

thats means the real cost is close to $18 an ounce

now lets sat "ramp up" doesnt go to plan. and If you look at the stats 50% of heap leaches fail and ramp ups never go to plan

lets say we only get 60% recovery not 70% for a while
what happens to total cost?

well... they go up, to close to $20 an ounce because now you spread the cash cost over 14% less ounces

gee you wouldnt want to be undercapitalised, prudence would say you need a spare $3million in the kitty just in case

BETTER FORM ELSWHERE