There is one flaw in this system though. These all-in costs only include additional all-in sustaining costs and do not include CAPEX for projects. If we would include these project costs, we would get an astounding $1784/ounce in 2012 for the bigger gold mining companies. Nevertheless, it's a first step in the right direction.
It is interesting to analyze how the all-in sustaining cash costs have progressed in 2013 as compared to 2012. All-in cost data has been taken from a research report of Dundee Capital Markets for the 2012 estimate.
|Chart 1: All-in costs gold miners 2012 (Dundee Securities)|
We see here that many gold miners are producing just under the average gold price of $1600/ounce in 2012.
Now we fast-forward to 2013, take data from a recent Denver Gold luncheon for the 2013 AISC cost estimate.
|Chart 2: AISC gold miners 2013 (Agnico Eagle)|
Now let's compare these numbers year over year. Read on here.