But how? The company has told us what the cost cutting measures...

But how? The company has told us what the cost cutting measures are. These should save $2.15m in this financial year. What ARE these economies of scale you are talking about?

Do you seriously think that, after deducting the $2.15m from the 23.052m to bring the costs for this FY down to $20.9m, they can increase production by 86% for extra costs of $2m, or 9.6%? They must have been working extraordinarily inefficiently last year, in that case.