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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: lorne who wrote (48857)	2/11/2000 12:12:00 PM
From: goldsheet	Respond to of 116767

> Do you know if the low production costs per./oz. for gold for Companies like Barrick has anything to do with leased gold, forward selling etc. and I guess low labour costs in countries like Africa, or Indonesia. Cash operating costs are only those costs directly related to the mining and milling of the ore, and do not include royalties, depreciation, or any other item. In many cases it is a combination of favorable capital and labor costs. Newer mines are designed with the latest technology and tend to be pretty efficiently designed, and labor costs in most of these countries are much lower. The picture is not completely favorable, just look at the problems in Indonesia. One must remain aware of the political risk of mining. One never knows when the the locals will object to mining or the government decide they want a bigger share. I don't think will we see anyone nationalize their minign industry, like Chile did in the 1970s, but diversification remains important.