G SmithWe live in interesting ties for forthcoming gold...

G Smith

We live in interesting ties for forthcoming gold production...just looking briefly and in note fashion at the big mines and how they are faring..., and some of the big ones which were being pushed to the produciton line, but now...

The Giant Obuasi Gold Mine in Ghana is operating at a reported $1520 per ounce CASH costs..

Some of the supposedly new mines Barrick had on the books, now gone a little frosty...Cerro Casale (32.6 m ozs), Pueble Viejo (30+ m ozs), Pascua Lama (20 _ m ozs...I forget the details as no longer going to happen)

Sth Africas gold mines employing 500,000 people, and the Unions are demanding 10+ % pay rise.

Newmont doing a $1,115 all in sust cost per ounce...in Nth America....?

Rosia Monatana (18.5 M ozs) getting lower grade all of the time...(same old story, just add ounces)... but theres some environmental history sitting behind this one, and now positioning themselves to start big when most would have started small and got confidence of green movement and govt, will be entertainment...

Then theres a few in PNG (Hidden Valley may remain hidden for a while more...lots of ounces, BUT, and it is a big BUT...Harmony reviewing its business (Sth African cash flows)...plus Newcrest which is also reviewing its operations and CAPEX...

So I think the mine supply side is going to be very interesting ...

I think good projects with the right IRR will do OK.