Discover cost of gold It interesting how people bash Frank over his spending. So I went looking for the discover cost of one ounce of gold.
BGM spent 100 million dollars and found 8 million ounces. so that means $12.50 an ounces. So if they find more the cost per ounce goes down.
Dividing the total exploration expenditures by the amount of gold found gives the unit discovery cost per ounce.
Ok 12.50 an ounce.
From an article the last decade (2000-09) have averaged $25/oz in constant June 2011 US Dollars.
So based on this number this a dirt cheap about half the cost of most finds. 2000-2009
An the unit discovery cost is currently running at $30 to $40 per ounce so this is not only incredible cheap it is nearly one of cheapest exploration cost per ounce around.
Try and remember the numbers are not in I am thinking about $8 per ounce. An an ounce is worth 1650 dollar.
Trends in unit discovery costs
Dividing the total exploration expenditures by the amount of gold found gives the unit discovery cost per ounce. As can be seen in Figure 6, unit costs have been slowly rising over time – and for the last decade (2000-09) have averaged $25/oz in constant June 2011 US Dollars. By comparison, average costs in the 1990s and 1980s were $21/oz and $16/oz respectively. The unit discovery cost is currently running at $30 to $40 per ounce. This figure includes an allowance for expected growth in recent discoveries
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