Quarterly Report to 30 June 2016

Highlights
Operations

• Gold Production – Gold production for the June quarter was 24,568 ounces and gold sold was
  26,487 ounces.
• Costs – Cash costs for the June quarter were US$953 per ounce. All-in Sustaining Costs (“AISC”)*
  for the June quarter were US$1,245 per ounce.
• 2016 Mine Plan – The June quarter saw total material moved up 38% from the June 2015 quarter
  and in excess of the 2016 Mine Plan, resulting in higher costs. However, this allowed the strip ratio for
  the first half of 2016 to track back to plan with the cutbacks at AB1, AB2 and Duckhead. As previously
  highlighted, substantially higher gold production is forecast for the second half of the year and the
  Company remains on track to achieve its production guidance of 145,000 to 160,000 ounces for
  CY2016.

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Silver guru’ David Morgan was recently interviewed by Future Money Trends and said that the gold and silver bullion “super bull market” has been initiated.

“We are finally in the very beginning of the new bull market which will be the most exciting as the third leg up is the one that is the most rewarding. In fact few will believe just how high the precious metals will go. The end date is most likely 2018/2019 at this point.”

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Gold Production – Gold production for the March quarter was 32,074 ounces.

More

n the last 20 years at least, whenever the correlation between silver and the money supply turned negative, silver prices jumped up big-time. Between 2000 and 2003, the correlation was negative. In this period, the bull market in silver prices began. Silver prices went from around $5.00 to $50.00, an increase of 900%.

CHINA will launch a new contract today to set a “benchmark” price for gold bullion in the world’s biggest producer and consumer of gold, as part of efforts to increase its influence in pricing of the precious metal.

The yuan-denominated gold fix will be launched on the Shanghai Gold Exchange this morning, with the benchmark price at 257.97 yuan (US$39.83) per gram, said a statement released by the exchange yesterday.

Eighteen banks and bullion traders have been chosen as initial market makers for the fix, including 10 Chinese lenders, Standard Chartered Bank, Australia and New Zealand Banking Group and six domestic and international bullion traders including Switzerland-based MKS Gold Ltd, the exchange said.

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