932 and rising, page-17

Everyone forgets the costs to produce gold are forever rising.

the average gold mine would have total production costs - cash costs + exploration costs + depreciation and admin costs, royalties etc.. of around $800/oz.

SBM's an average cost producer - has cash costs for instance of $560/oz - then add your other costs above , you wont get any change from $800/oz.

Isnt SBM supposed to make a profit?

What about high cost producers, how will they survive?

They wont if gold stays at $900/oz for too much longer - as costs each year especially consumables explosives, fuel are constantly rising.

Whereas oil and base metal production can be cranked up - global gold supply if anything has been actually falling each year.

I think $900/oz is the bear minimum price - otherwise at least a quarter of the gold mines may close.