This means the price is soaring to get metal out of the ground now. Basic costs of doing business. Premiums are also rising in China.
Petrodollar system everybody needs to read this. Jerry Robinson
You are using a pretty broad paintbrush with your $1,200 cost statement. Every mine is different and has different cost structures. This is a big part of what makes Yamana such a solid investment amongst the mining companies.
Go to the Yamana website and read about the costs and methods of mining each deposit for a basic understanding of this. Then get back to us with a comprehensive cost analysis that justifies your statement.
Hint... you can't!
Sentiment: Strong Buy
In order to compare what Yamana states are its costs for GEO, what percentage above that are the cost of refining? Yamana is not a refiner, and sells only a partially refined product, in other words a concentrate. This could vary from one miner to another, unless there are universal concentrate specifications. So the question is how to discover the real cost basis. If one miner provides a less concentrated product, they could claim lower costs than another with a higher concentrate. There has to be some cost shifting here in which the end use refiner presents a different picture of cost from one mining company to another. How much this can vary is the question.
It would seem that the issues of “costs”, without an assessment of the refining side of the equation, are incomplete. Who actually sells the refined product to the end user? In this case does Yamana pay a refining fee, take the refined product back, and then put it up for bid on commodity exchanges? Or does the refiner put up what they’ve refined onto a commodity exchange?
If this was the true cost then all that extra money thats missing would be sitting on the bottom line!
I have auy but that is not the true cost to mine it!
You have exploration you have start up costs equipment fuel geologists enviro impact studies and the list goes on!1200 sounds close!
once you factor in taxes and the the money needed to replace reserves the true cost of mining is much higher from my understanding(about 1200 to 1300 an ounce) This why some people make the mistake of thinking mining stock is cheap when it really isn't.
Sentiment: Strong Sell