CAI - General Chat, page-733

Pretty bad time to have to go underground, the capital start up costs going underground are pretty big (e.g,. ventilation, portals, air, water, mesh, cable bolts etc) and also more labour and materials input intensive so more prone to cost inflation rather than open pit mining. Sure underground is more selective mining, but its always higher cost and less tonnes at a higher cost, everything is more expensive underground. Most smaller underground miners are suffering increased mining costs and margin pressures related to inflation.