PRODUCTION COSTS: NEW LATIN AMERICAN

摘要

The cost curve below compares available information on projected operating costs for 17 Latin American gold projects where production decisions have been made or where production began in 2004. The cost figures are plotted against each mine's percentage of the group's total annual gold production capacity. If all 17 projects reach their potential, they will add about 4.2 million oz/y to world gold production, representing an addition of 5 percent to estimated 2004 world mine production of 81 million oz. The weighted average cost for the surveyed group is 154 dollars/oz; the simple average is 161 dollars/oz. These projections are well below the global average, which according to Gold Fields Minerals Services was 246 dollars/oz in the first half of 2004, a 13 percent increase over 2003 costs. If the 17 projects included in this report produce gold at their budgeted costs, the average positive cash flow would be 255 dollars/oz at the 2004 average gold price of 409 dollars/oz. However, experience has taught us that it is more likely for cash costs to be higher than expected rather than lower, especially in the early years of a mine's life.