Street talk. You said, deeper you go the more it costs. No. Olympic dam has multiple shafts and moves in excess of 10MT per year. Cost per tonne output would be minimal compared to most mines in Australia. Others don’t have the luxury to fork out 300 million plus on a shaft let alone find an investor to assist in this climate. Oyu Toglio in Mongolia is a prime example of a massive mine going into production next year. The plans for that place are ridiculous. World supply for copper will be met for years to come. The bulls for copper better think twice. Australian miners are not competing against other miners, they are competing against the cost of doing business in Australia. With the type of mines like Oyu Toglio going into production next year, it has a significant impact on Copper price. Don’t worry about South African gold mines, worry about your copper/iron ore produces in Australia. Their the ones that have a lot to loose. 3.5%,4%,5% who cares what inflationary pressures are placed on your saving. It’s a hell of a lot better risking your money in the stock market or realestate. I was fortunate to put my super into cash in the past 3 years and actually made some money compared to a lot of others. I didn’t have a lot to play with prior to the GFC. Risking money is fine but picking your time is just as important, and IMO its not now.
