Mining is expensive
In the first quarter of 2023, the costs in gold mining have become higher again.
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It is true that costs fell slightly by one percent in the final quarter of 2022. But this was only a brief pause. The average all-in sustaining costs (AISC) of gold mining companies had previously risen. AISC refers to the complete sustaining cost, or production cost per ounce of gold. And the permanent production costs in terms of selling prices are what people are looking at. Now, gold mining costs have gone up six percent in the first three months of 2023 compared to the previous quarter. This means they have reached a quarterly record high of US$1,358 per ounce of gold. This is also an increase of around ten percent year-on-year. Since 2020, inflation has also hit the mining sector. Labor, electricity and fuel have become more expensive. This was caused by supply chain problems in the wake of the pandemic and then by higher energy costs following the Russian invasion. Of course, circumstances such as harsh winters also have a cost-increasing effect on gold companies that do not operate in the best areas due to the weather.
Mining-specific factors, for example, have an impact on costs. At industry heavyweights Barrick and Newmont, costs actually rose at an above-average rate in the first quarter of 2023, to 13 and 10 percent per ounce of gold, respectively. At Nevada Gold Mines, a joint venture between Newmont and Barrick, costs at Carlin rose a huge 39 percent quarter-over-quarter. Downtime and high snowfall had an impact here. That's where gold companies with favorable climates have an advantage.
There is Aurania Resources - https://www.commodity-tv.com/ondemand/companies/profil/aurania-resources-ltd/ -, for example, with its involvement in South America. Gold, silver and copper are the focus. The company's flagship project is the Lost Cities - Cutucu project in southeastern Ecuador.
Companies such as Queen's Road Capital Investment - https://www.commodity-tv.com/ondemand/companies/profil/queens-road-capital-investment-ltd/ - provide financing for mining companies. The company invests in companies (precious metals, base metals, uranium), earns with securities and shareholders with convertible bonds.
Current corporate information and press releases from Aurania Resources (https://www.resource-capital.ch/en/companies/aurania-resources-ltd/ ) and Queen's Road Capital Investment (https://www.resource-capital.ch/en/companies/queens-road-capital-investment-ltd/ ).
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