Income Small economic analysis.
Costs for rolling
The "All-in" cost in 2012 was $ 1,209. Gold was at $ 1,700 on average.
The "All-in" cost in 2013 was $ 1,026. Gold was at $ 1,389 on average.
The "All-in" cost of Q4 2012 was $ 1,174.
The "All-in" cost of Q4 2013 was $ 841.
2013
The "All-in" cost of Q2 was $ 1,086
The "All-in" cost of Q3 was $ 1,059
The "All-in" cost of Q4 was $ 841
2012
Production of 25,000 ounces of gold
Profit: 12 millions.
Average Price of Gold: $ 1,700
Net income: -4.5 millions.
2013
Production of 82,500 ounces of gold
Profit: $ 20 millions.
Average Price of Gold: $ 1,389
Net income: 1,6 M.
2014
Production of approximately 150,000 ounces of gold
Estimated profit (by me): 30 M. (calculated with an all-in cost of $ 1,100, not $ 841)
Average gold price estimate: $ 1,300
Net Income:?.
In short, they control their increasing cost. Imagine if gold goes ...