Given that FY 2015 forecast production is falling to 150k ounces...

Given that FY 2015 forecast production is falling to 150k ounces I an unsure that anyone including the company has stated that there is "operational upside". There should still be good free cash flow generated.

The POG is not a proxy for a gold miner. If the POG increases by $100, your wealth holding gold will increase by approx 7.5% using the current gold price. If a gold miner's margin is currently $100 per ounce, an additional $100/ounce represents a doubling of the pre-tax margin. The leverage at present is huge. When gold starts the climb back to $1,800 there are going to be multi-baggers all over the ASX gold space.

Long-life reserves companies with no debt will do very well.