gold in freefall.. how low slr monday?, page-92

Interesting comment there Disco Stu about production costs and that SLR's all in costs of $1144/oz are unsustainable.

These are the all in costs of some of some well known gold miners;

Newmont (5.5% of global production) operates at $1100/oz
AngloGold (3.8% of global production) operates at $1150/oz
Newcrest (2.8% of global production) operates at $1100/oz
Goldcorp (2.5% of global production) operates at $1135/oz
Harmony (1.5% of global production) operates at $1400/oz

You can check their quarterly reports if you don't believe me.

These costs account for the wider business operation, rather than just mining and milling operations. If the gold price is above your all-in cost, you are making a profit on that margin. So SLR generates a profit of USD$216/oz or AUD$221/oz based on tonight's spot gold prices. The most recent quarterly of SLR flagged the ability to reduce all in costs by $100/oz by ramping down and utilising stockpiles. So we're talking an $300/oz profit generation on Mt Monger sales, of which over 120,000oz will have been made in this financial year. Not bad for a company with a market cap of $270M as of tonight's close! Even at full capacity, without the ramp down, the company is very much a profitable one. They are just as profitable as the big goldies on the market at these prices.

That's just my 2 cents for what its worth. There really is an awful lot of conjecture on HotCopper about gold production costs at the moment; some posters are speaking a bit out of their depth it seems.