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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Perspective who wrote (159615)	10/23/2008 11:51:56 PM
From: ItsAllCyclical	Respond to of 306849

Keep in mind when these companies quote "cash costs" that's different than total costs. Total costs are usually another 100 to 150 higher in many cases. Given that their cash costs are over 500 if gold goes back to 600 again and stays there for a while this company could languish while other lower cost producers do better. Ultimately I'm in the camp that says that gold is going to 2K+ plus, but given the forced selling and currently deflation I have no timetable right now. Again waiting for a more confirmed market bottom in the general market before getting back in on the long side in gold. As Patron points out NGD looked cheap at 2. GBN looked really cheap at 1.5. Both have been cut in half since then. Japan under 8K as we speak. Should lead to more selling tomorrow.

To: Perspective who wrote (159615)	10/24/2008 9:17:25 AM
From: patron_anejo_por_favor	Respond to of 306849

>>It sounds like the cost of production is above $566, but when the sales of copper and silver byproducts are netted out, it reduces the cost to $566. How much do those byproduct sales account for in terms of reduction in production cost? Copper has been hammered mercilessly.<< It's exactly what it sounds like. Falling copper and silver raise the "net-of-byproduct" costs. Of course, these are offset in a big way by falling energy prices and falling native currency valuations (NGD has it's mines in Mexico, Australia and Brazil...all 3 are countries where currencies have collapsed since the end of Q3.)