Geowizard 122 Report post Posted September 14, 2015 Servicing debt; Many mining companies borrow money for the purpose of mining. - Geowizard Share this post Link to post Share on other sites
Reno Chris 101 Report post Posted September 18, 2015 At current prices a lot of operations are right on the cusp of profitability when considering the "all in sustaining cost of production". See: Many Gold-Mining Companies Losing Money Despite Cutting Costs and See: http://www.kitco.com/news/2015-08-05/Metals-Focus-Much-Gold-Output-Operating-At-Loss-On-AISC.html Share this post Link to post Share on other sites
diggingbar 13 Report post Posted September 24, 2015 Good article. There is a wide discrepancy between profitability using TCC vs AISC. There was a big push a few years back for gold producers to un-wind their hedging to the gold price. That was during the great bull run. I bet a lot of the producers wish they had done some hedging on this multi-year decline. Share this post Link to post Share on other sites
Reno Chris 101 Report post Posted September 25, 2015 The whole hedging thing is tough unless you can see into the future to know exactly what prices will do. when they are sliding down, you look like a genius if you can sell at higher prices. On the other hand if they go up, you look like a dunce for locking in a price less than market. Share this post Link to post Share on other sites
Harry Lipke 13 Report post Posted September 25, 2015 Some companies might just want to fail..... My son works at a mine that has 10 overhead personnel supervising 8 workers. Share this post Link to post Share on other sites