Gold miners 1200cost fallacy
So back in June 2013, the World Gold Council introduced a new goldmining cost measure known as allin sustaining costs. They include far more than cash costs. They include far more than cash costs.
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So back in June 2013, the World Gold Council introduced a new goldmining cost measure known as allin sustaining costs. They include far more than cash costs. They include far more than cash costs.
Since the 1990s, cash costs have been the dominant measure of goldmining cost structure. That is what it actually costs to mine each ounce of gold. Cash costs include direct production costs, onsite administration, regulatory, royalty, and tax expenses, along with smelting, refining, and transport costs.
21/8/2015#0183;#32;Analysis shows that the average allin sustaining cash costs for the gold mining industry are substantially below the 1,200 number thrown around by the investment community.
Cash Cost /Ounce Cash Cost /Ounce Annual Average Gold Price in 2011 = 1,569 Gold Mine Cash Costs in 2011 production relatively less sensitive to changes in the price of the metal. 0 200 400 600 800 1,000 1,200 1,400 0 200 400 600 800 1,000 1,200 1,400 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Weighted Average Cash Cost = 621
The cost for acquiring gold and silver ore mine operating license fee 500,000 Other startup expenses including stationery ( 500 ) and phone and utility deposits ( 2,500 ). Operational cost for the first 3 months (salaries of employees, payments of bills et al) 150,000
18/10/2013#0183;#32;Gold miners chose to pursue lowergrade projects, which drove much of their rising mining costs. Over the past four years, average cash costs of the elite HUI gold miners have grown % annually on average. So apply a similar increase to 2012s average cash cost of 719, and you get a 2013 projected cash cost of 818 per ounce on trend.
4/2/2015#0183;#32;The allin cost in Q3 2014 was per ounce, but the cash cost was only I don''t think PAAS would even consider shutting down operations unless silver drops to the low teens.
silver mining costs exposed cash cost fallacy. Hochschild Mining: silver lining. Allin costs fell by 6 per cent last year to 17 an ounce, doubling its free cash flow at a cost under 12 falling to perhaps 10 as production ramps up.
Previously, the silver and gold mining industry cited cash costs, which were expenses excluding big capital expenditures, exploration expenses, administrative and corporate overhead, and the like.
10/7/2013#0183;#32;SILVER MINING COSTS EXPOSED: Cash Cost Fallacy. July 10, 2013 Byproduct accounting has given the investor an illusion of a Low Silver Cash Cost in Heclas example above as well as many other primary silver miners. It doesnt matter how low a companys cash cost is, but rather how high their profit margins can be thats
7/8/2020#0183;#32;Silver mining companies are engaged in the exploration, development, and production of silver. Many companies in the silver mining industry also mine for other metals, such as gold, palladium
Average cash cost per metal: We track allin sustaining costs (AISC) in accordance with the guidelines issued by the World Gold Council, as a means to monitor current production costs and preparations for future production; however, we continue to use the traditional cash cost metric as we believe it is more representative of the production costs incurred during the period, eliminating
23/5/2019#0183;#32;A negative figure was achieved because the revenue generated through the sale of byproducts (copper) surpassed the costs of production. Newcrest Minings Cadia Valley mine which also has strong copper production was the second lowest cost producer with AISC of 206 per ounce, followed by Kirkland Lakes (ASX:KLA) extremely high grade
The estimate of cash cost per ounce of silver has been reduced by a third to less than per ounce of silver from the previously announced estimate of per ounce. You May Also Be
Gold Mining Stocks Profits Fallacy Commodities / Gold and Silver Stocks 2013 Oct 19, 2013 11:27 AM GMT. By: Zeal_LLC Gold miners stocks have been brutalized this year, leaving them bleeding
So apply a similar increase to 2012s average cash cost of 719, and you get a 2013 projected cash cost of 818 per ounce on trend. Odds are cash costs will actually come in lower, since gold miners can modify mining plans in many cases to target highergrade ore to compensate for a goldprice downturn.
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