gold in freefall.. how low slr monday?, page-99

Disco Stu

Many of the gold producers can survive for a considerable length of time by increasing their average grade of production and closing down their more marginal mines so long as they can make enough cashflow to cover their variable costs and ongoing fixed costs such as interest payments.

This will apply to the big companies such as Barrick and to smaller producers. SLR can be more selective about where it sources its ore from its underground mine - choose higher grade material so that it takes out of the ground and processes less ore per ounce of gold produced, thereby lowering average costs.

Of course their profits would fall off because they are getting a lower price per ounce for their gold production which would also be produced in lower quantity than originally planned.

I understand that SLR has a largish stockpile of ore already mined by IGR which can be processed, so to some extent some of their costs have already been incurred thereby requiring less future outlays to earn revenue.

loki