RE:RE:RE:RE:RE:RE:Press Release Jan/23 Matlas,
As per determinimg the price per GEO that someone would pay for the gold at the Ishkoday, below is a pull from the Gold Council's web page on the subject of all in sustaining costs.
In Q1’23, AISC increased by 6% q/q to reach a record quarterly high of US$1,358/oz. This figure represents a 10% increase year-on-year. Rising industry costs since 2020 have been driven by inflationary pressure on all aspects of miners’ input costs, notably labour, fuel and electricity. This was the result of supply chain disruptions and government policies enacted in the wake of the COVID-19 pandemic. These factors were exacerbated by rising oil and gas prices following Russia’s invasion of Ukraine. In addition, regular cyclical factors further elevated costs in Q1’23. Costs are often higher in the first quarter of any year for mines operating in countries that have harsh winters, such as Canada and Russia. Meanwhile, in South Africa production efficiencies are impacted by worker absence during the holiday season, pushing costs higher.
At $1,358 per GEO AISC plus $350 per GEO paid for the mine you get $1,708.
Is this calcuation correct - how would the price paid per GEO be added to the AISC or is it left out?
Assuming the $1,708 is correct the next item to factor in is the sale price of gold. Using the average price of the past 15 year at about $1,400, it looks like the business model won't work.
Am I missing something? AISC lower than average at Ishkoday? Sale price of gold higher than the average for the past 15 year?
Your insight would be appreciated.
I remain long on LME
Time and Money