RE: RE: RE: RE: A Great Turnaround Story Those numbers are correct and amount to a cash cost reduction of about $350 per oz of gold produced.
To this can be added about $150 per oz for increased grade, $150 per oz for using our own mining fleet for a total reduction in mining cost of about $650 per oz.
Increasing production by 50 % will also reduce cash costs, as certain costs ( G & A ) are fixed and the current decline in the Aussie dollar will also help.
In other words, computations that lead to a reduction of cash costs by over $600 per oz are quite consistent with the evidence at hand and are in fact a derivative from such information.
It shows that a target of $1.85 is achievable here, even at $1400 POG.