why sgw is making little money?

Just looking at the total gold production for the quarterly, total production cost is AUD558 per oz. Not much margin for profit. Just to flog BSG a little more, I recall I calculated their total production cost an average 2002 production figures at around USD180, which now equates to a bit more than AUD300. My back of envelope figures suggest that SGW's gold mines might currently produce 10 times that of BSG current single operation (SGW average say 130k oz, BSG 12.5k oz) but probably only produce a pre-tax profit say two or three times that of BSG. This is a very crude calculation, and is probably not 100% accurate, but interesting.

Angus

I hold BSG