Gold moved past A$1,600 overnight and as it creeps steadily...

Gold moved past A$1,600 overnight and as it creeps steadily higher (12 week high), we could see more brokers/investors looking to get exposure to the margins in producing australian ounces. Everytime i read a report like below, i can't help but wonder why they aren't getting excited about $1,000/oz margins instead of $400/oz margins! An all in sustaining cost closer to A$300 must just be too good to be true for them, but the binding offtakes tell me otherwise

(from today's Age)

Citi analyst Trent Allen said the e gold price this year would be very uncertain. "Anyone who knows e what the gold price is going to do this year is having themselves on."

Although the price fell heavily in US dollar terms in 2015, in Austra lian dollar terms it has held up, now trading at around $1570 an ounce, "We're happy to see that Austra lian gold producers, with the tail wind for the currency, are making , good free cash at the moment. "To produce an ounce of gold in Western Australia at the moment will cost you about $1000 per ounce in sustaining costs.

"Even if you add another $100 per ounce or $150 per ounce for extra corporate costs or nonsustaining capital expenditure, you're still making a solid $400-per-ounce margin. If you can't make money at this Australian dollar gold price you should probably open an ice-cream shop." Mr Allen said the depreciating Aussie had been a great boon to local miners, not only of gold but of other metals.