"True Cost Figures - IAG's true all-in costs for Q1FY13 were $1403 per gold-equivalent ounce, which was higher on a year-over-year basis, but that was to be expected since last year's first quarter's costs were lower than expected. But compared to the FY2012 costs, $1,403 was pretty much in-line with the average costs for the year.
Compared to competitors, IAG's performance was a little on the higher end but not far from average with other competitors such as Yamana Gold (AUY) (costs just over $1300), Allied Nevada Gold (ANV) (costs just under $1000), Goldcorp (GG) (costs just under $1200), Silvercrest Mines (SVLC) (costs below $1100), Kinross Gold (KGC) (costs just under $1400), Newmont Gold (NEM) (costs around $1300) Agnico-Eagle (AEM) (costs around $1400) and Barrick Gold (ABX) (costs around $1200)."
Based on their 100 million cost reduction program for 2013 and 850,000 ounces I calculated their cost this year to be $1,285. Still too high in this environment with gold at or below $1,200 now. They have to find another 100 million and suspend the dividend until gold is over $1,400 an ounce again. Finding the next 100 million is cost savings will most likely sacrifice some revenue on the production side so they along with many other miners are in a bit of a jam right now.