RE:Worries about the cost of their mine project?There are 4 issues at play here.
1. Gold has increasingly strong completion from bitcoin as store of value.
2. The companies in this sector are seen generally speaking as poor stewards of capital and this latest cycle has confirmed this impression once again. The emergence of a large number of gold related ETF's means that those who believe in a higher gold price could easily play the sector without assuming operational and political risk.
3. We're expecting a recession. We're due for one and quite a few indicators are pointing that way. The small cap gold stocks are not doing well in recessions.
4. Torex is a high risk and high cost producer.
Single asset in a state with troublesome labor unrest history and in a country with a leftist government. The recent trouble in Panama with First Quantum has reminded investors of political risk.
Having the wokest management in the gold sector certainly doesn't help. It comes with additional costs. Electric vehicles are costly and unreliable. Prioritizing "diversity" over competence will also have consequences.
And these expected cost increases have just started materializing. A 10% jump, for now.
Then we have risks associated with the construction and commissioning of the new mine. Things often go wrong and these projects often run over budget and/or get delayed. Why take that risk ?
So, yeah there is some support at around $12.50 but if that fails we're looking at $10.