I must admit I having been wrestling with the same issue of...

I must admit I having been wrestling with the same issue of costs, but when I look at fuel costs ( the oil price) steel costs ( iron ore) one could expect significant increases in costs since the POG at $350, I do not believe labour has been that dramatic, though geos wages went well up!!, In Australia other red tape such as environmental and native title have added to it.

it is really difficult though to agree with costs at $1200 average world wide - does the same increase apply to other commodities - it should because they have the same inputs, and often base metals flotation etc more expensive processing?!

I too am slightly suspicious of this base line No of $1200