http://www.mineweb.com/mineweb/content/en/mineweb-gold-news?oid=261361&sn=Detail

This is almost laughable in that the opinions and anlysis in no way address the effect of falling energy prices on the cost of production. IMO, this abosultely must be accounted for by anyone looking at any part of the mining sector.

The story does suggest that major gold producers have about reached their limit in cost cutting options, but those are internal factors only. What does it matter if cost cutting has reached it's limit, while operating costs are falling owing to external factors like lower energy costs?

Watch the fireworks when your gasor electric supplier asks for a rate increase in this environment!

Back on topic, average energy costs per major (gold) miner are quite obviously widely variable, though the "all in" cost of production per ounce has been estimated at around current prices levels - 1100 - 1200 dollars per ounce.

http://business.financialpost.com/2014/03/06/exactly-how-much-does-it-cost-to-produce-an-ounce-of-gold/

Now check this and try to argue it does not effect the bottom line.

VP in AZ