Cost of producing an ounce of gold....with update, nuggets!!!

AUandAG

Update further down.
This has been discussed many times on this forum. Here's the facts on ore mined here in Nevada. Barrick is our largest producer
here and these are all Barrick properties in whole or in part. Summary is $470 per ounce. Nevada mines produce about 80% of
all gold production in the USA. Newmont mining is also very big in Nevada (6 mines in the Carlin Trend) and produced 6.4 million oz in 2010 (worldwide) but I cannot break them down by individual mine production. One mine produced over 500,000oz (Twin Creeks Mine). Kinross
mining produces 2.9 million oz with their Candelaria Mine and there are many others that I cannot break down for you as it's too time con-
suming!:

In 2010, the expanded Cortez operation produced 1.14 million ounces of gold at total cash costs of $312 per ounce. Production at Cortez exceeded its original guidance range of 1.08-1.12 million ounces, and increased by 120% over 2009, mainly as a result of the commencement of production at the Cortez Hills open pit operations.

In 2010, Bald Mountain produced 59,000 ounces of gold at a total cash cost of $722 per ounce. Proven and probable mineral reserves as of December 31, 2010 was 4.7 million ounces of gold.

In 2010, the Goldstrike Property produced 1.24 million ounces of gold at total cash costs of $530 per ounce. Goldstrike’s proven and probable mineral reserves as of December 31, 2010 was 12.6 million ounces of gold.

In 2010, Barrick’s share of production was 46,000 ounces of gold at total cash costs of $683 per ounce.

In 2010, Barrick’s share of production was 178,000 ounces of gold at average total cash costs of $721 per ounce.

Ruby Hill is an open-pit, heap leach operation. In 2010, Ruby Hill produced 81,000 ounces of gold at total cash costs of $702 per ounce. Proven and probable mineral reserves as of December 31, 2010 was 1.1 million ounces of gold.

n 2010, the Company’s 75% share of Turquoise Ridge’s production totaled 124,000 ounces of gold at total cash costs of $622 per ounce. Barrick’s share of proven and probable mineral reserves as of December 31, 2010 was 4.2 million ounces of gold.

bob

derryb

I read current average is $600 an ounce. Oil prices are a big factor in production costs.

AUandAG

<< <i>I read current average is $600 an ounce. Oil prices are a big factor in production costs. >>



Yes, oil is up. It might be $600 but it's hard to get hard numbers that are current. And each mine has
it's own problems and costs of production. I doubt that it would add $130 per ounce for oil but maybe
you are correct. Where did you read that? A reliable source? Is that figure a US number or a Nevada
number. Cost of production is considerably higher in Montana, Colorado, Utah and Idaho. That would
make sense for a US average. Just saying.

bob

roadrunner

Cash cost is still not an "all-in" cost to mine an ounce of gold. There are some things routinely left out.
I've sort of figured that all-in adds another couple of hundred bucks to the average bottom line.

roadrunner

ricko

Makes me wonder what the gross margin on an ounce of gold is at the mine. I have no doubt they know, but likely not public knowledge. Cheers, RickO

gecko109

What is the average production cost to pump a barrel of oil from a well?


What is the average production cost to make a $100 FRN?

Baley

the cost of producing something can be considered to represent a floor in it's market price, as long as there is ongoing demand for the product

there is no ceiling, the upper range of the price of the good (or service ) over the cost of production is dictated by the market forces of supply and demand, the levels of which depend largely on greed and fear by market participants. what influences greed and fear? primarily personal views, perhaps modified by news, opionion "news", and advertising

CaptHenway

There have been times when the gold spot price declined below the production cost of a particular mine and that mine simply kept on producing at a loss, accepting the (relatively minor) loss in the hope that the price would eventually go back up, or that a more productive vein might be uncovered. The alternative might have been eating a large loss that shutting down would have entailed.

fishcooker

Our 8 bbls/day oil costs about $20/bbl plus royalty of $15-20/ bbl plus the actual price is about $10/bbl less than the published price. Our labor is free.

AUandAG

Second hand information: Just spoke to my son who was talking to a core driller that was
drilling north of Round Mountain, Nevada. The driller showed my son cores that had nuggets
imbedded! Would not allow pics or location information. I would have like to be there to see
that! I've seen a ton of cores and anytime there is visible gold your heart pumps and dang
near jumps out of your chest!

bob

aj2525r

Hello,

Not sure about now but a few years ago I read an article that claimed Saudi Arabian oil cost $12 dollars a barrel loaded onto the tanker!

I'd hope that labor costs or upkeep has made that higher.