Ann: Quarterly Activities Report, page-6

The AISC is still too high. Needs to be lower than $1200 going forward or they need to find 50koz pa more production. Given they have hedged at +$1700 over the next 2 years, their advisors must not think an AUD/USD rerate is a possibility. Most of the analysis I have read appears to point to a forward weakness in the AUD unless the reserve bank start talking up interest rates. Does anyone know if they have hedged at an equivalent of A$1700 - ie its hedged in USD but for Australian reporting purposes its divulged in AUD? Hopefully their hedge book is flexible enough to allow them to take advantage of any rerate that may happen over the next 2 years.