Explo is nice because its about blue sky. Blue skies turn dark when it comes time for an mre. Just ask wm about that. Maybe thats why they are taking their time. Silly things like resources, reserves, grade, and this mess things up:
A couple of things that stick out about Newmont’s (NEM) rough day. First, the way it traded against the GDX and Barrick (GOLD) over the last five days:
Second, production costs at the Nevada Gold Mines JV:
In its Q2 production NR, Barrick told us that its AISC for gold was set to rise by between 3% and 5%. If so, it looks as though it got good cost numbers from its African assets to offset the sharp rise at Nevada Gold Mines, as disclosed by NEM today. However, the overall costs number was so bad at NEM and NGM is so important as ABX’s jewel in the crown, it’s difficult to see how Barrick can avoid the same type of damage when it files its quarter on August 8th.