He's right of course, fuel costs must be a fat slice of costs in the low-grade open-pit operations ... it's still where the leverage is, and that's positive provided that you don't overpay for the privilege ... it's not out of the question that oil could settle down some, while gold keeps on, this would give the Western Gs a bit more tailwind ... but they have a pretty well-planned operation already, if memory serves fuel is estimated at one quarter of cash costs ... canny old financial types too, they may have hedged fuel ... [this is not so hard really, guy i know does, he has about a ten or fifteen thousand litre diesel tank, contracts ahead for a year if he likes the price, if not he waits and runs the tank down ... claims to pay consistently ten or twelve cents less per litre than the way i do, which is strictly cash and last buy was .95ish for purple]
epm+wts/mr+wt/wgi.to/goz.v/ckg.wt - these are my main gold plays by declining order of value right now, first three are actually fairly close together ... i'm thinking of taking a bit of profit in the first two, adding it to the wgi/wgw, making it the leader ... possibly more goz.v as well ... just had good luck with them, had good luck with the epm/wts package as well, but think it's about to run into partial-harvest time, then poof, more wgi |
