Costs and Profit

Operating Costs and Operating Profits – Senior Gold Companies

As described under Definitions, the Operating Costs (usually presented as Cost per Ounce) may be reported differently by the various gold companies and therefore should not be regarded as being directly comparable (as assumed in the following charts). This exercise generally makes use of the most recently reported cost figure – which may be from a quarterly period. The estimated Operating Profit used here is computed at an assumed Gold Price - in this case $1170 per ounce (the approximate price at the Computation Date).

Note: No figures are given in the above chart and also in the table below where these are not available in the company reports. It should be noted that the Operating Cost figure should be regarded as an assumption only.

It may be expected that there will be an inverse relationship between Operating Costs and Enterprise value per Ounce (i.e. the lower the Operating Cost the more Operating Profit per ounce - which should equate to improved overall profit and increased Enterprise Value on a per ounce basis). Satistically, the results are not convincing - however, the following comparative graph shows the general trend:

Mid-Cap and Junior Gold Companies

Presentation of Operating Cost statistics and analysis for the Mid-Cap and Junior companies is currently beyond the scope of this web site. However, all of this analysis will be provided for the Mid-Cap and Junior Gold Companies in the GoldVal.com Gold Company Review. This work will include sensitivity analysis for different gold prices. (See Services section)