RE: RE: RE: RE: Was there a short term "Like i said before, when gold prices are very high, the profit margin increases for operators as a % of the gold price. If the cash cost stays flat and the profit margin increases, that is when 80% of oz is better than 20% of oz. The disadvantage of costs to producers becomes a smaller percent, so more oz is better, the 80% oz generates more free cash flow.
I think this would be the case (flat cost + very high gold price) that goes against the assertion that royalty/streamer companies are strictly better than producers. But the producer has to be a stable reliable producer."
Sorry buttercup, but you're wrong in your belief in flat costs. With every central bank printing fiat like it's going out of style, cast costs for producers will rise. ie... fuel, equipment repairs, new equipment, insurance costs, taxes, etc... all plays a role in a producers costs. So, really there are no flat cash costs, except for Sandstorm Gold. :)