Look at the Resolute mining who is leader in West Africa gold mining. Their actual 'cash costs' after including cash outflows like royalties, head office costs, capex, taxes, exploration, development, working capital, currency movements and more is around $1150oz~$1200oz on production of almost 400000oz per annum. AMX cash cost could be more than that if they are to use Albion process and especially in the rump up phase. So if gold drop to $1300oz than it's questionable how economical many gold deposits are? Last example is IGR who opted for CR today as they last Q production cost blow to $1450oz from $550 predicted by feasibility studies. IMO that's one of the reasons why many gold companies SP are halved in recent times. Cash cost are escalating while possibilities of gold price correction to well below $1500 are increasing in the current uncertain market condition where even gold is treated as risk asset.
AMX Price at posting:
45.0¢ Sentiment: None Disclosure: Held
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