Theres a reason why many in OPEC are producing oil when they state their costs of production are higher than the sale price. ie their losses would be greater by not producing at all than producing at a loss. The only reason this wouldn't be the case is if you mothball the plant, lay off all your staff and reduce your costs to almost nothing.
If Heathgate haven't layed off the staff they would be better to be producing and lets not forget at the current price they are not making losses anyway, supposedly. And when you consider they will mine for 20+ years what difference is one years mining when selling a few dollars less than the current price.
AGS Price at posting:
7.5¢ Sentiment: None Disclosure: Held
