Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from John Bridges - J.P. Morgan.
John Bridges - J.P. Morgan
Just wondered, if you could give us a little bit more clarification on how you are handling Quiruvilca. You still mentioned it in your prepared remarks, but just wondered whether everything was being expensed in the income statement?
Geoffrey Burns
Indeed, every dollar that we’re spending at Quiruvilca, is going through and into our cash cost, we’re not deferring anything. So that certainly are, some mine development, we’re still doing limited mine development and other things that would normally have been capital that are now coming through as direct operating cost. So, especially a little over $10 reported in the second quarter is the fully loaded cash cost.
In terms of plans, we’re still, as Steve mentioned, we’re still preparing Quiruvilca for care and maintenance at this price level with $14 prices and $10 cash cost, it may well keep going longer than we probably initially anticipated at the start of this year, because it is still making both $4 an ounce of production. So it may go further into 2010, but the longer term plan is still care and maintenance for Quiruvilca.
John Bridges - J.P. Morgan
Then in early to this presentation, you could have got remarkable chart of trebling your productions since 2002. Just wondered whether the expressions especially you have been talking about is enough to show any growth next year, or will you just put, a recessed any study state absent deals?
Geoff Burns
I think John that we can look forward to some additional growth next year as we see full year’s production coming at San Vicente and relatively steady state from our other operations. We are looking very carefully at the discoveries we’ve made at our own projects. Do you see where there are opportunities for internally generated growth, probably the most prospective is at our Huaron operations, which is our largest proven and probable reserve.
Where we could look at internally increasing capacity although it’s a little bit premature to talk much more than in those general terms on that. Then beyond that, yes, we are going to have to push along with La Preciosa, which we are very excited about, the more we get into it, the more we’re liking it, and yes, followed by acquisition activity to keep that growth profile going in 2011 and beyond.
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