Who is going to get a bargain!, page-814

Just listening to Fidelity's portfolio managers talk about the reporting season and it's application to resources. They highlighted that from BHP & Northern Star labour costs which constitute 40% of ongoing costs are pushing up esp. In WA. That may be a reason that RXM has gone the way it has. Viz. looking to get more capital out of a JV partner than raise more capital in the market. They can do that if a buffer is needed.

Also as you guys from SA and management have clearly noted is easier to control those labour costs in SA around Hillside.


BTW, NST says they are getting their labour costs under control down from 40% p.a. (!!!) staff turnover to 20% - still high.
The point is also tangential to the options for management issue.

All IMVHO.