GREY:COLUF - Post by User
Post by
staolinon Apr 17, 2013 11:54am
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Post# 21265594
The true cost ($) of gold production
The true cost ($) of gold production https://seekingalpha.com/article/1346991-the-true-all-in-cost-to-mine-gold-complete-2012-figures
This takes a solid approach to uncovering the approximate true costs of mining gold in a sustainable manner based off all expenses. There are a few small assumptions for simplkcity and due to information availability.
Now when you consider that initial capital expenses are hardly considered except through their tax and loan interest effects, there is no money being made by investors for producing projects, without even considering startup investment costs, at almost 1400$/oz. This represents the true costs of mining for 30% of the world's production, from the most well established public miners.
The article also notes the steadily increasing costs as approx 10% y/y and the decline in production from 2011 to 2012.