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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (22988)	12/7/2004 6:26:01 PM
From: Amark$p	Read Replies (1) \| Respond to of 110194

Russ, do you have a price inflation index for chemicals...? Do not need anything detailed, just some guidance/range as to inflation in chemicals sector for the past few years, so I can project forward gold mining cash costs. "Since metals prices do not quickly adjust to rising energy prices, there is no natural hedge built into the metals business. But the vulnerability of the metals business to rising energy costs varies greatly from one business unit to another. To take just one example, the U.S. gold mining industry typically spends more on chemicals than energy. For example, in 1997 (the most recent year for which detailed statistics are available) the industry consumed over 3.6 million barrels of light diesel fuel in 1997, and an additional 13.1 million gallons of gasoline. The purchase price of all this exceeded $117 million or only about three percent of the value of gold produced. In that same year, the same mines purchased over $260 million in chemicals, ranging from reagents to ammonium nitrate and other explosives."