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Re: Pedro2004 post# 6168

Sunday, 07/13/2008 9:44:31 PM

Sunday, July 13, 2008 9:44:31 PM

Post# of 22460
Right, but this is a business that costs a lot of money to operate. Yes, 667 tons will cost quite a bit to do; they're pulling out far more than that now, so it should cost less per ton to produce. For example, if I want to produce gold, and it costs $10,000 to purchase the equipment, hire the workers, ect., and then I only produce 10 ounces of gold my costs per ounce will be extraordinally high. However, when I produce 10,000 ounces it will be less. If all they were producing was 667 tons and then called it quits, then I'd say you have a point and we should be concerned! Of course, when we're talking about 1,500 to 2,000 a DAY then their marginal cost is going to go down.

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