Barclays: 10% Of Gold Production ‘Under Water’ For All-In Sustaining Costs
Friday September 19, 2014 2:34 PM
Barclays’ analysis shows that 10% of global gold production is cash-negative when using all-in sustaining costs. Of those companies that were tracked, average cash costs in the second quarter were $717 an ounce, while “marginal” – or 90th percentile – cash costs were $988, Barclays says. The average all-in sustaining costs were $941, while marginal all-in sustaining costs were $1,285. “The main highlight of the recent data is that costs per ounce have not fallen with prices,” the bank says. “Much of the improvement we saw in costs over 2013 and in the beginning of 2014 was in head office costs, where there is declining room for improvement. At current gold prices (which were around $1,220 to $1,230 as Barclays prepared its research note), we estimate that more than 10% of global production is under water – not an insignificant number.”
By Allen Sykora of Kitco News; asykora@kitco.com
Friday September 19, 2014 2:34 PM
Barclays’ analysis shows that 10% of global gold production is cash-negative when using all-in sustaining costs. Of those companies that were tracked, average cash costs in the second quarter were $717 an ounce, while “marginal” – or 90th percentile – cash costs were $988, Barclays says. The average all-in sustaining costs were $941, while marginal all-in sustaining costs were $1,285. “The main highlight of the recent data is that costs per ounce have not fallen with prices,” the bank says. “Much of the improvement we saw in costs over 2013 and in the beginning of 2014 was in head office costs, where there is declining room for improvement. At current gold prices (which were around $1,220 to $1,230 as Barclays prepared its research note), we estimate that more than 10% of global production is under water – not an insignificant number.”
By Allen Sykora of Kitco News; asykora@kitco.com
