Though i not great believer atm in MK, it is a little simplistic to state $16.6mil divided by 7259oz = $2286 cost per oz.
the bulk of the 16.6 million is being spent in the development of the open pits and underground.
It would be nice if MON reported in terms of development and production costs instead of lumping it all in production.
i am now of the view that you automatically add 6 months to the start up date any miner states publicly.
That being the case i am now of the view that visible improvement will not be evident until Sept quarter.
Whilst it is hard to decipher the breakdown of these costs, i would say the cost per ounce at this point in time would be approx AUD$1000/oz ex development costs
Costs then to be approx AUD$650 or better, in the second half of the year.
The key driver for me is ounces produced per month.
i entered MON looking for a quick buck return, i now realise that the true reward will come most likely 1st half 2009.
My game plan now is add to my position (but not significantly)on the next capitulation selling or tax loss selling in May / June. And then hold and forget and let time sort it out.
Good luck to holders.
MON Price at posting:
0.0¢ Sentiment: None Disclosure: Held
