get ready for 10cents , page-58

I was doing this in my head today too.....

Formula is:


X*(Y-900)/2

X = Recoverable gold
Y = Gold price

The real concern at the moment is Y staying well above $1,000. At that point we go down to $1m only......

For some real perspective, consider the global average production cost is ~$1,200*, we are 25% below that figure, very impressive. It also gives us far more room to move if the price continues it's fall.

Personally, I'm still comfortable. I'm not expecting any SP movement until we get confirmed recovery rates and cost figures at the end of this year though.

*Source http://www.bloomberg.com/news/2013-04-17/gold-miners-lose-169-billion-as-price-slump-compounds-etf-pain.html