When I first read it I too assumed it was the actual cash cost in dollars. However, when I went back again it does state US$ and indexed. This to me means the costs in the current quarter are 50% of what they were at the first comparison point. If we don't know the costs at the first point we can't infer the costs of the quarter in $ terms, only that they are better.
The interesting thing is they noted costs in US$ which adds in the exchange rate. The exchange rate today is ~.75 which I believe is lower than the exchange rate of the initial quarter. If I had the time I would goto the RBA website and pull the average quarter rate. Having a lower exchange rate inflates the reduction actually achieved. I would of liked to see them keep the currency constant so we can see the true production variance.
IMO it feels like a consultant had too much time to make things look great.
GBG Price at posting:
2.3¢ Sentiment: None Disclosure: Held
