I strongly believe this is worth repeating, As I mentioned in one of my previous posts, Silverado Gold Mines production could be around $500/ton which would allow the company to mine at a profit, while the average production cost for the majors $1,100/ton. $900oz Gold will probably force the majors to mothball some of their projects while selling off the low grade projects in order to survive. With world wide high demand for physical gold soaring, Silverado Gold Mines could be among the few with a sign on the front door "Open for Buisness" selling the flavor of the day, high grade "Gold-Antimony" All the company needs to do is find the right financing to put the Nolan Creek project into production, and the world will beat a path to their front door!! GRIM REAPER's "DD" Work http://agoracom.com/ir/Silverado/forums/discussion/topics/579172-silverado-est-production-cost-500-vs-1-100-for-major-mining-companies/messages/1818780#message
Eldorado’s move to preserve capital signals what’s to come from other gold miners
July 16, 2013
Miners with high debt and high capital requirements like Barrick Gold Corp. have been severely punished by investors, as have those that rely on high-cost, marginal gold mines. And the ones that have immediate financing needs have fared worse than anyone. On Monday, shares of junior developer Colossus Minerals Inc. plunged a stunning 50% after the company indicated it needs more cash to finish building its Serra Pelada gold mine.
Mr. Wright said the problems these companies are facing are nothing new, as they happen every single time gold moves into a bear market.
“It’s the classic gold company pattern that’s been repeated over the decades,” he said. “As gold prices go up, the companies have a history of taking on too much leverage and chasing projects that require sustained high gold prices to make any type of return. And when the winter comes, they find themselves over-geared with projects that are marginal or uneconomic.”
If gold remains around the current price of US$1,290 an ounce, Mr. Wright predicted there would be plenty of “walking wounded” companies that will hang around in hopes that the market improves. If the price falls to US$1,000 and stays there, he suggested many companies would be unable to make enough adjustments to survive and will simply die off.
http://www.canada.com/business/fp/Eldorado+move+preserve+capital+signals+what+come+from+other+gold+miners/8668053/story.html
