Posted by c32y7pr8 on 19th of Mar 2013 at 03:46 pm
It has not been
customary for mining companies to produce all-in costs, which is a
difficult task. According to the Thomson Reuters Gold Survey 2012,
the average cost across the gold mining industry for mining an
ounce of gold was $727 per ounce. This figure includes only those
costs directly associated with the production of the gold. The
total all-in cost of mining an ounce of gold across the industry is
currently around $1,300 and for some producers it is considerably
more. For example, it costs Gold Fields, which is one of the
world’s largest producers of gold with annualized production of 3.5
million gold equivalent ounces, $1,788 an ounce.
GFMS’s
total cash cost variance (2010 versus 2011) shows that the main
areas of increase are 1) declining global average mill head grades
at 33%, FX at 20% and labour 20%. Energy costs are less than 10% of
the increases.
Investment bank CIBC
has produced a complete breakdown of costs. Operating costs are
$700/oz, but there is also sustaining capital, construction
capital, discovery costs and overhead. CIBC pegs those at an
average of $600/oz. Adding $200/oz for taxes on average, results in
$1,500 to produce an ounce of gold.
In
2012, Barrick produced 7.4 million ounces of gold at total cash
costs of $584 per ounce. The all-in sustaining cash costs were $945
per ounce andthe figure in 2013 is expected to be around
$1,000-1,100.
But it still does not accurately reflect the
cost it takes to mine an ounce of gold.
Goldcorp
for 2013, the company
estimates all-in sustaining cash costs of $1,000 to $1,100 per
ounce compared to approximately $865 per ounce in 2012 and approx.
$ 800 in 2011. Cash costs are forecast at between $525 and
$575 per ounce on a by-product basis, and between $700 and $750 per
ounce on a co-product basis.
In
very round figures some companies that I follow are Osisko $1000,
Argonaut $850, Rio Alto $750 and Eldorado $500.
Argonaut has moved up 18% in the
last 19 trading days and Endeavour Silver 25% in 10 days. Osisko
may be forming an inverse H & S.
MINING COSTS
Posted by c32y7pr8 on 19th of Mar 2013 at 03:46 pm
It has not been customary for mining companies to produce all-in costs, which is a difficult task. According to the Thomson Reuters Gold Survey 2012, the average cost across the gold mining industry for mining an ounce of gold was $727 per ounce. This figure includes only those costs directly associated with the production of the gold. The total all-in cost of mining an ounce of gold across the industry is currently around $1,300 and for some producers it is considerably more. For example, it costs Gold Fields, which is one of the world’s largest producers of gold with annualized production of 3.5 million gold equivalent ounces, $1,788 an ounce. GFMS’s total cash cost variance (2010 versus 2011) shows that the main areas of increase are 1) declining global average mill head grades at 33%, FX at 20% and labour 20%. Energy costs are less than 10% of the increases.
Investment bank CIBC has produced a complete breakdown of costs. Operating costs are $700/oz, but there is also sustaining capital, construction capital, discovery costs and overhead. CIBC pegs those at an average of $600/oz. Adding $200/oz for taxes on average, results in $1,500 to produce an ounce of gold.
In 2012, Barrick produced 7.4 million ounces of gold at total cash costs of $584 per ounce. The all-in sustaining cash costs were $945 per ounce andthe figure in 2013 is expected to be around $1,000-1,100.
But it still does not accurately reflect the cost it takes to mine an ounce of gold.
Goldcorp for 2013, the company estimates all-in sustaining cash costs of $1,000 to $1,100 per ounce compared to approximately $865 per ounce in 2012 and approx. $ 800 in 2011. Cash costs are forecast at between $525 and $575 per ounce on a by-product basis, and between $700 and $750 per ounce on a co-product basis.
In very round figures some companies that I follow are Osisko $1000, Argonaut $850, Rio Alto $750 and Eldorado $500.
Argonaut has moved up 18% in the last 19 trading days and Endeavour Silver 25% in 10 days. Osisko may be forming an inverse H & S.
good reason why miners are getting beat up
Posted by hazbin1 on 19th of Mar 2013 at 03:51 pm
thanks for the insight, if you ever come across a matrix of miners and a breakdown of their costs i would love to see that posted.