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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (48464)	6/26/2012 3:22:39 PM
From: E_K_S	Respond to of 78745

Hi Paul - Sultan one of the shrewd value resource investors on SI provided me w/ this report. Gold Mine Cost Report virtualmetals.co.uk The Gold Mine Cost Report is produced as part of a joint venture between ABN AMRO Bank N.V. and VM Group/Haliburton Mineral Services. It surveys the gold production cash costs of 111 gold mining companies. From pg-3- of the report: Average gold mine cash costs rise 1.8% to $620/oz in Q1 2011. One obvious factor in this rise in production costs over the past few years has been the weak US dollar – in which gold is priced. ------------------------------------------------------------------------------- This should help you determine a base line for the miners you follow. I also see it as a hedge since many of the Canadian miners will see a net lower cost of production if/when the $US gets stronger. Therefore, for me, the value proposition is not only owning a profitable mine at book value w/ a lot of cash, but should become more profitable as production costs decrease due to a rising $US. EKS