OK, let's take a couple of examples. Say the Mexican peso crashes, because their Cantarell oil field waters out. If the US$ pos remains the same, but they are paying their workers in pesos, they make an additional profit based purely on the difference between silver sales in $US and expenses paid in pesos. If the $A has increased vs. the $US in the meantime, the question of whether BSG makes more or less profit depends on whether or not that appreciation has been greater than the additional profit they have made due to the $US/peso exchange rate.
That's one example where the $A pos is not the driver.
Let's also consider the case where BSG are paying all of their expenses in $US. They sell their silver in $US, so their net profit is in $US and the $US/$A exchange rate at the time is relevant, not the $A pos. Let's say that overall wage and mining materials inflation in $US is running at 10% p.a. If the $US pos is not increasing by at least 10% p.a., they are going to be less profitable, regardless of what happens to the $A pos.
Finally, assume they are mining silver in Australia. They pay wages in Australia and sell their silver at the $A silver price. Then the $A pos is directly relevant to their profitability.
I don't deny that they $A pos is a relevant factor in the overall equation, but you and Bruce seem to be suggesting that BSG's fall is as simple as the $A pos and, if we don't see that, we're somehow ignorant or blinkered. That's a wrong (and unsophisticated) assessment.
Now that we have that bit out of the way: how much do you and Bruce know about the proposed takeover of BSG by Coeur D'Alene Mines? Hmmm...not much? Then take your opinions over to the GOLD thread until you have something of value to add.
BSG
bolnisi gold nl
