RE:Ramping Up Peranghi Cost and DrillingIm not sure I understand your question.
As far as I know these mine development costs have been capitalized, as it is preparing the mine for full commerical mining.
As for cash costs, fixed overhead costs are spread over the ounces mined.
That means that the cash costs per ounce will decline proportionally with ounces mined.
For example, if 6000 ounces were produced rather than 2900 ounces in Q2 , those cash costs would decline to half of what they are reported in Q2 report.
In addition, cash costs are inversely proportional to recovered gold per ton mined.
Recoveries were just 58 % in Q2 as most of the ore produced were sulphides.
Once Peranghi gets going, Oxides will dominate productin and recoveries will increase to the 85 % to 90% range.
To summarize, the cash costs experienced in Q2 is anomalous for the reasons stated above but also because heavy rains impaired mining efficiencies.
That is, cash costs should return to normal levels in the range of $1100 AISC or lower, depending on just how many ounces of oxide Peranghi can produce per quarter.....