Question-and-Answer Session
Operator
Thank you. (Operator instructions). Our first question is from Jim Rollyson from Raymond James.
Jim Rollyson - Raymond James
Good morning, Peter.
Peter Socha
Good morning, Jim.
Jim Rollyson - Raymond James
Peter, you didn't give us a cost bridge this quarter. So, first question, probably one of the most important I guess is, is cost in Central App you kind of noted in the press release, you had some particular unusual issues, but the things seem to be maybe normalizing back down to what they should be plus or minus what's going on with raw materials. You were thinking -- you have been running in the upper 40s; you have been guiding in the upper 40s. Kind of thoughts on where this normalized cost number goes out to? I guess as it looks forward to fourth quarter particularly next year, and I recognize that --
Peter Socha
I think -- yes, we will come out with guidance. We are in the budget process now. We have gone through two iterations. We have shared it with the Board so we will come out with cost guidance here probably before the end of the year. We are certainly -- right now we are down below -- first of all, you got to back out the $1.50 or $1.80 or something like that of incremental royalties on the 58. So back that down, so you are at say, 56. We are down below that now, we are quite a bit below that. But the productivity is definitely an issue right now. So we will have updated guidance. It's somewhere between -- right now what we are seeing is somewhere between our previous guidance at this quarter. As C.K. said, we had the seals issue. At Montgomery Creek or at the Cheyenne, we had an awful lot of moving around of dirt.
You would think that when you buy a property and it has a permit that you would go onto it and mine under the existing ground control plan that would not be an issue. What happened was because it is a change of operator, they then start you back, it's like going back to zero. So you start with as though there was not an operation there and then you have to build your way back up to a ground control plan that is from our standpoint would be a little bit easier to work with. And so there was an awful lot of moving around of dirt there. You're right, we did not do the bridge and maybe should have, but between that and the seals, you probably got another several dollars. And then as you well know, oil and diesel and everything else was actually pretty high for most of the quarter.
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