Don't think you can look at it that way. IMO it gives a...

Don't think you can look at it that way. IMO it gives a distortion of reality.

If, say, SAR produces 135000 in period 1/1/13 - 31/12/13, only 46 000oz are hedged for this period and at average $1655.

If lucky, say SAR produces the remaining 89000oz at average $1400p/oz it results in an average of $1487p/oz.

Opex already (so it seems) say $1100 - 1300p/oz not including state royalties and probably a raft of other royalty obligations towards previous holders of the assets/tenements (could add up to at least another 200p/oz) and then all adittional expenses attributed to admin, salaries, offices etc which does not fall under OPEX, suggest that SAR is already on the bubble.

Unless the quarterly indicates significant cost reduction SAR could be in as bad a spot as any of the other high cost producers under the current POG. This is a huge concern to me and would like to be advised differently by someone who see it a different way.