Gold: 1200 is the limit of the average production costs, miners erase 169 billion market capitalization, many will face existential problems
According to analysts, the Japanese Nomura, the current market price is slowly approaching the level of the average production cost, which is around the level of 1 200 USD per troy ounce. Another approach to this market price threshold increases the risk of financial problems of individual mining companies or the closing down of individual or entire companies. According to Tyler Brody of Japanese banks below zsikovosti now moves about 15% of the producers of gold. Broda estimates that the price of gold at the end of this year will drop to 1 000 USD per troy ounce.
Real risk of closing down there, especially in Africa, where all the negative effects of adding still growing geopolitical risks.
According to estimates of the cost of production in the case of Barrick Gold reaches approximately 972 USD, Newmont produces gold for around 1 192 USD, Narmony Gold Mining for 1 446 USD.
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Peter Bukov, TopForex
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