RE:RE:RE:RE:RE:NewsWe all know that costs are increasing due to the inflation of the supply of fiat currency. We also know that precious metals are the best hedge against inflation. So, while the AISC of the gold to be mined and the capex of the project increase, are they increasing at a faster pace than the price of gold?
Wages tend to be sticky - once set for a 12 month period they are more or less static. Ditto with equipment purchases - once purchased and financing is locked in, there should be no surprises. Fuel costs will vary week by week as will the price of the gold being sold.
Long story short, since some of the expenses tend to be static but gold's price can increase upwards or downwards each week, my guess is that on the whole, increasing prices will be beneficial to the project's IRR and NPV if you consider both revenues and expenses.