Just 10 yrs ago Gold was much much lower than today; it has quadrupled or more in value and now the gold companies are struggling. They squandered their capital. That costs are up is a lame excuse for mismanagement.
The only way to make money with miners, is to buy them at the beginning of an up cycle and sell close to the peak.
When the price of the commodity (whether it be gold or any other metal) increases they start spending like drunken sailors and giving themselves bonuses and perks and when prices crash, they write off assets, lay off workers and pay down debt.
I agree they have been largely mismanaged. I am thinking, along with professional analysts, that this big drop in the physical prices will refocus miner management on controling costs. If they focus on that with a laser sharp focus, they will be in a fantastic position when/if physical prices rise above $1600/oz again.