high cost producer= highly leveraged to gold $

With the gold price finally breaking up it will the High Cost producers who were marginal or loss making under the previous lower prices that stand to benefit the most


For example last qtr RMS produced 22k Ozs at a cost of $1,450/Oz
But the gold price received was $1,375/Oz so RMS lost $75 for each Oz it produced.


But with a rising gold price currently around $1,525/Oz RMS would have made $75/Oz profit

So a $6m loss vs a $6m profit for that Qtr is the difference the rising gold price has made or $12m difference in total (22k Ozs at $150/Oz difference)

So while the current moves in gold might not seem like much to the high cost producers like RMS they have a huge impact