Ann: Integration Update , page-7

chuk

If production is below expectations think what that means for average cost. To me it means that for the December quarter the IGR operations will have been operating at or near a loss. As for the SLR part of the Mt Monger operations, it is clear to me from the recent average grade of production that they need more milling capacity to reach 200k pa which would reduce average cost there.

Obviously once they have sorted out all the issues (in about 12-15 months) the combined Mt Monger operations should be able to produce at 300k ounces pa at a much lower average cost than they do now.

In the meantime the market has spoken and reduced the share price, and I think there will be a lower price once the quarterly report has been digested by Mr Market.

loki