Gold and Silver Mining Stocks Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold and Silver Mining Stocks

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: goldsheet who wrote (76)	2/10/2000 8:42:00 AM
From: russwinter	Read Replies (1) of 4051

Bob, I offer the following example towards our ongoing discussion concerning the viability of new mining supply at prices under 325. PDG now estimates an operating cost of only $98 (with a copper credit) for it's enormous 23 million gold, 6 billion copper Cerro Casale project partnered with Arizona Star. Yet the capital costs ($1.4 billion), time value of money and lead time still make this a marginal project despite only $60 capital costs. The same can be said of LaCristinas. Although the cost of money variable can be mitigated somewhat by selling substantial future production (that they may or may not have) into the market as forward sales or naked (I consider it naked until gold is actually in hand) calls, the question still begs: Is that a risk worth assuming for a project that for all practical purposes is still a gleam in it's daddy's eye? Looking at your excellent list of major mines, I really wonder (given the preponderance of cash costs over 200, or even 150) how many could actually be put into production from scratch today. I haven't looked at capital costs for each mine, but my guess is only minority.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next