Hi Guys and Gals,
One of the topics that gets swept under the carpet is the cost of GOLD mining...
We ALL love the sight of a freshly poured bar of GOLD!
What are the economics of GOLD mining? This might be a good place to discuss the underlying, often never revealed cost factors involved in getting GOLD!
- Geowizard
Mining Economics...
Moderator: chickenminer
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Geowizard
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Re: Mining Economics...
It aint "free";
Moved from another thread for relevance to this topic;
What's the cost? Free GOLD ain't "free" baby...
Gold Mining is the only business where you can spend $2,000,000 to make $1,000,000...
Look:
https://www.outsiderclub.com/report/the ... -2019/1365
All in Sustaining costs (AISC) first quarter of 2019 for Juniors run up to $875 an ounce.
- Geowizard
Moved from another thread for relevance to this topic;
What's the cost? Free GOLD ain't "free" baby...
Gold Mining is the only business where you can spend $2,000,000 to make $1,000,000...
Look:
https://www.outsiderclub.com/report/the ... -2019/1365
All in Sustaining costs (AISC) first quarter of 2019 for Juniors run up to $875 an ounce.
- Geowizard
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Geowizard
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Re: Mining Economics...
What is AISC?
Sustaining a mining operation means you have to look farther than the end of your nose...
https://seekingalpha.com/article/279998 ... d-weakness
Without forward looking exploration, you may be out of a JOB tomorrow. Operating cost is only part of the cost equation. Planning for equipment replacement involves BANKING cash for replacement of equipment as it nears end of life. No mine runs forever. Miners are always spending money - looking ahead.
- Geowizard
Sustaining a mining operation means you have to look farther than the end of your nose...
https://seekingalpha.com/article/279998 ... d-weakness
Without forward looking exploration, you may be out of a JOB tomorrow. Operating cost is only part of the cost equation. Planning for equipment replacement involves BANKING cash for replacement of equipment as it nears end of life. No mine runs forever. Miners are always spending money - looking ahead.
- Geowizard
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Geowizard
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Re: Mining Economics...
What's the cost?
The COST has to always be worst case! This is the challenge we have...
Are you operating a Commercial GOLD mine in Alaska?
Do you carry the mandatory multi-million Dollar "Mining liability" insurance policy?
You paid the cost for MSHA classroom training for all of your employees?
Federal Mining claim maintenance fees paid up with reclamation BOND in place?
How much did you spend on Reclamation of mining operations last year? Drone flyovers with video as proof?
Did you pay the 30 percent - 50 percent Federal income TAX on your GOLD after putting the check in the bank?
Note: Refiners forward pay-outs on GOLD to the IRS...
Dividends to your investors?
Personal wages - all in - driving to and from.
Fuel cost and amortizing your equipment?
This is the short list...
- Geowizard
The COST has to always be worst case! This is the challenge we have...
Are you operating a Commercial GOLD mine in Alaska?
Do you carry the mandatory multi-million Dollar "Mining liability" insurance policy?
You paid the cost for MSHA classroom training for all of your employees?
Federal Mining claim maintenance fees paid up with reclamation BOND in place?
How much did you spend on Reclamation of mining operations last year? Drone flyovers with video as proof?
Did you pay the 30 percent - 50 percent Federal income TAX on your GOLD after putting the check in the bank?
Note: Refiners forward pay-outs on GOLD to the IRS...
Dividends to your investors?
Personal wages - all in - driving to and from.
Fuel cost and amortizing your equipment?
This is the short list...
- Geowizard
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Johnedoe
- Prospector
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Re: Mining Economics...
Actually it's similar to trading , Same question ..How do you make a million dollars trading? You start with 2 million.
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Geowizard
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Re: Mining Economics...
Johnedoe,
Yes... The challenge for us is to minimize the costs and risks associated with this work. We can do that.
The "buy in" is in the form of preparation and planning as well as understanding the level of unpredictability in finding GOLD of sufficient value to warrant further expense. That's a huge barrier to entry for the average person!
Luck and Hope have their place in the Casinos!
- Geowizard
Yes... The challenge for us is to minimize the costs and risks associated with this work. We can do that.
The "buy in" is in the form of preparation and planning as well as understanding the level of unpredictability in finding GOLD of sufficient value to warrant further expense. That's a huge barrier to entry for the average person!
Luck and Hope have their place in the Casinos!
- Geowizard
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Geowizard
- Mega Miner
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- Joined: Sun Dec 16, 2018 4:18 pm
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Re: Mining Economics...
Don't be intimidated;
The nay-sayers would berate and make humiliating comments to those that have the personal courage to identify themselves as "a prospector"...
Prospectors are a special breed in the sense that they CAN prepare and plan to move forward with optimism into an unknown situation. We tend to look at economics in terms of dollars and cents. There is a personal cost and risk to those that become a prospector. That's where courage comes in!
- Geowizard
The nay-sayers would berate and make humiliating comments to those that have the personal courage to identify themselves as "a prospector"...
Prospectors are a special breed in the sense that they CAN prepare and plan to move forward with optimism into an unknown situation. We tend to look at economics in terms of dollars and cents. There is a personal cost and risk to those that become a prospector. That's where courage comes in!
- Geowizard
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easy goer
- Copper Miner
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Re: Mining Economics...
Geowizard wrote: ↑Tue Apr 09, 2019 11:10 am
Gold Mining is the only business where you can spend $2,000,000 to make $1,000,000...
- Geowizard
The restaurant business can make you half the man you were pretty quickly! I have seen several groups of people with "more money than God" get into the restaurant business and don't care what it costs. They make it about a year then the cash calls start! When they realize they are cutting on 5 people a week to support their restaurant habit they decide they would rather lie on the beach and go to someone else's restaurant than continue to experience the pride of ownership.
Easy goer
Gold Mining is the only business where you can spend $2,000,000 to make $1,000,000...
- Geowizard
The restaurant business can make you half the man you were pretty quickly! I have seen several groups of people with "more money than God" get into the restaurant business and don't care what it costs. They make it about a year then the cash calls start! When they realize they are cutting on 5 people a week to support their restaurant habit they decide they would rather lie on the beach and go to someone else's restaurant than continue to experience the pride of ownership.
Easy goer
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Geowizard
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Re: Mining Economics...
Easy Goer,
Having been in the Restaurant Business, I share your sentiments! It doesn't matter what you have on the menu either - the customers want something else! That's a book unto it's self...
GOLD represents a stable market at present. The only demand for the miner is to manage the cost factors. No worries about the food service! If you complain, you get to be the cook!
- Geowizard
Having been in the Restaurant Business, I share your sentiments! It doesn't matter what you have on the menu either - the customers want something else! That's a book unto it's self...
GOLD represents a stable market at present. The only demand for the miner is to manage the cost factors. No worries about the food service! If you complain, you get to be the cook!
- Geowizard