For gold mining companies, cost is a central issue, as gold needs to be extracted from the ground, refined, and then sold. And just like in any other industry, lower production costs lead to higher profits. It is often stated that it costs around $1,200 to produce one ounce of gold. However, this figure is usually derived from accounting practices and does not reflect reality. The so-called All-in-Sustaining Costs (AISC) are based on accounting standards issued by the World Gold Council for the first time in 2013. The underlying intentions were to promote consistent application and more transparency in gold production. These standards were further revised in 2018. However, depending on the location of mining activities and the applicable regulatory environment, it is difficult to provide consistent costs.
For example, average total costs in South Africa ranged from $1,400 between 2005 and 2013, while in Peru, they were less than $700. Today, the costs of gold production are increasing throughout the mining industry. The average AISC rose by one percent in the third quarter of 2022 compared to the previous quarter, reaching a new record value of $1,289 per ounce.
Overall, the average AISC for gold is now about 14 percent higher than the same quarter of the previous year and continues to rise. Therefore, it is crucial to carefully consider gold companies when selecting gold stocks. Gold Terra Resource - https://www.commodity-tv.com/ondemand/companies/profil/gold-terra-resource-corp/
- and Karora Resources - https://www.commodity-
tv.com/ondemand/companies/profil/karora-resources-inc/ - are examples of companies that can be considered.
Karora Resources experienced record production in the first quarter of 2023 at its two mines in Western Australia. The company expects gold production to reach 145,000 to 160,000 ounces in the entire year 2023. Gold Terra Resource owns the Yellowknife City Gold Project in the Northwest Territories, where the high-grade gold mines Con and Giant were located in the past.
For current company information and press releases from Gold Terra Resource (- https://www.resource-capital.ch/de/unternehmen/gold-terra-resource-corp/ -) and Karora Resources (- https://www.resource-capital.ch/de/unternehmen/karoraresources-inc/ -).
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