Using the Goldman Sachs Commodities Index as a proxy for the costs of mining (because it is heavily weighted towards industrial commodities), the real cost of mining gold jumped by nearly 50% during this period, explaining why gold stocks did not provide the leverage that gold investors expected.
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However, since 2008, the ratio of gold to commodities has surged, slashing the real cost of mining gold by over 60%.
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Better yet, the real cost of mining gold is headed lower.
FORBES: Gold Mining Stocks Are An Increasingly Attractive Opportunity
Investors seem to be concerned about what the increasing cost of mining will mean when coupled with a weaker gold price narrowing margins and more pressure on cash flows at gold mines.
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Cost inflation for mining companies is likely to rise further this year, Meader said.
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However, some scientists struggle to see how cost-effective asteroid mining could be, even with the high value of gold and platinum.
This meant attacking the cost culture within the Australian mining industry.
Samaddar said that many other industries in Poland such as coal mining and transportation rely on healthy steel production and that cost efficiency is paramount.
South Africa's mining sector has been hit by a series of wildcat strikes, which have cost millions of dollars.
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The high cost to expand the mine given the current negative sentiment in the mining industry raised a few eyebrows with analysts due to the low internal rate of return.
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It talks of more cost-cutting, but not if it threatens long-term deep mining of rich ores.
The project, called the Clinton Giustra Sustainable Growth Initiative, will focus on Latin America and other parts of the developing world and will work with the private sector--specifically, a group of mining companies--to address social, economic and environmental issues in a sustainable and cost-effective way.
Gold producers likely to see negative cash operating cost offsets due to a weaker greenback include Newmont, Agnico-Eagle and Jaguar Mining.
How much it will cost Fortescue to produce a tonne of ore is the source of much debate in Australia's mining community.
ECONOMIST: Fortunes in the mining business come and go faster than ever
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