wall of buyers, page-53

Feen, a lot of the recent elevated per ounce cost has also come from the development of new pits and requirement to use a lot of the stockpiles. I expect that the June half we could see costs more like US$900-950/oz given they are targeting 110-125 koz. I know June half guidance is $975-$1100 but I think they are probably being conservative (they've beaten cost guidance most of the last 4-6 quarters from memory).

The new mining contract is now in place which I think is quite a large cost reduction from historic rates. This is supposed to be the main cost driver but given the ore from the new pits is only just coming online in full it might take a few months to see how real costs are going compared to forecasts.

The relocation costs were also looking like coming in under budget I think Jeff mentioned in the last quarterly conference call (worth listening to the last 10 minutes of the last few quarters of these on the Perseus website as that is where the analysts ask these sort of questions).

Fuel costs should also be a good saving given it is a high tonnage operation.

Exploration is something they need to pursue a bit more aggressively, especially if they aren't proceeding with Sissingue. Need a bit of newsflow and new interest.