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07/11/15
12:07
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Originally posted by moorookamick
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A look at the All-in Sustainable Costs (AISC) of the major
gold miners is always a good place to start in having a view on the
long term price floor for gold:
Miner...............................AISC
Barrick..............................$920
Goldcorp...........................$1050
Newmont..........................$1110
AGA...................................$1180
Kinross..............................$1100
Goldfields..........................$1210
(figures in USD for 2013, amegroup.com)
While the above biggies may try to improve their AISC
by dropping high cost mines or cutting back on exploration,
this will only lead to cutting production in the longer term.
So those predicting the POG sub $1000 are not being realistic, IMO.
IMO, the longer term POG will likely have a floor around $1150
because under this, supply would likely be seriously restricted.
Cheers
Moorookamick
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Most of those companies will have cash cost C1 below 700. They can last a long time with gold price under 1000. If the POG doesn't go below 1000, it won't be because supply would be seriously restricted....it won't be unless POG goes below 1000 for 2-3 years. IMHO DYOR