Mexus Gold US (MXSG)

[F4Uvet]

How Much Does it Cost to Produce an Ounce of Gold?
BY PROVIDENTMETALS.COM


How much does it cost to produce an ounce of gold? It’s very difficult to determine exact numbers, but mining companies have methods of estimating production costs.

Mining costs were grossly underestimated up through the 1990s. Companies would report “cash costs” on their financial statements, which measure the costs specifically tied to extracting gold from the ground. These costs ran from $500 to $800 per ounce, depending on the location of the mine. But these cash costs failed to consider the expense of running a company, buying and repairing equipment, adhering to compliance regulations, and such.

A new metric has since been developed by the World Gold Council to report the “all-in sustaining costs” of mining gold. These numbers report that the cost of extracting an ounce of gold is actually over $1,000 per ounce, well above the aforementioned numbers.

The majors are all aware of the costs. The hobby miners...not so much.