Over the past 12 months the AUD gold price has risen from $2,600 to $3,100 per ounce. That is a 20 percent increase. The top Australian gold miners over the period have an average all in sustaining cost (AISC) of $2,040 per ounce. Accordingly their profit margin has increased from $560 to $1,060 per ounce which is a 90 percent increase. Investors in gold stocks have a lot of leverage when the gold price rises such that profit margins increase at a far greater rate than the gold price itself.
OAU Price at posting:
0.7¢ Sentiment: Buy Disclosure: Held
