Concern over rising cash costs in gold mining in South Africa
With more companies adopting the World Gold Council's new all-in sustaining cost measure, which incorporates costs related to sustaining production over the life of a mine, it could result in reporting of higher costs on the balance sheet.
Gold mining cash costs are expected to increase in 2013 especially in South Africa due to several factors includding labour and power costs that make upto 15% and 49% respectively, according to Barclays Research.
With more companies adopting the World Gold Council's new all-in sustaining cost measure, which incorporates costs related to sustaining production over the life of a mine, it could result in reporting of higher costs on the balance sheet. The all-in sustaining costs includes cost for exploration and studies, capitalised stripping, underground development, and sustaining capital expenditure.
"For example, at IAMGOLD, the eighth-largest producer,Q2 13 all-in sustaining costs were 50% higher than total cash costs ($393/oz); at Kinross,the seventh-largest producer, the difference was more than 60% ($335/oz). Although higher, all-in sustaining costs are still below gold’s $1400/oz level seen this week, but the margin for cash cost increases continues to narrow as cash costs climb q/q. It is especiallyimportant to watch South African production assuming all-in sustaining costs are similar," according to Barclays.
South Africa remains the highest-cost producer of gold with marginal cash costs rising 5% to $1124/Oz in Q2, 2013.
Sumber : Google
No comments:
Post a Comment