what happens when gold stays below $1,200? , page-6

Its really simple - when the POG drops you either cut costs or close up shop.. Some mines with good hedge books can make good money without producing an oz of gold by buying cheap gold and delivering into a forward hedge book while protecting their in-ground resource.

For the last 30 years ive been in mining and have gone through 3 boom / busts situations and i suspect this one will be no different.

I posted this up yesterday and it shows which mines are currently viable and who has to take some drastic action - during these time the 3rd & 4th quartile cost producers either have to find ways to cut costs or close up shop.

PS: The real interesting thing in reflection is how the C1 costs have risen along with the POG... these cost inputs must now come back down in a similar manner if the industry is to survive as we know it today..

Cheers

RT