KRM 2.94% 3.3¢ kingsrose mining limited

production costs unbelievable!, page-3

  1. 131 Posts.
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    To answer your question dan69, yes it can be true - the key being "after silver credits". The actual cash costs are around $350 per ounce of gold (based on past announcements) but KRM are also extracting silver at the same time. Rather than try and work out how much extracting gold and extracting silver cost seperately to get a gold cash cost and a silver cash cost (which is almost impossible since they are both being removed at the same time), they deduct the money received from the silver from the cash cost. So, using the $350/oz from above, for every ounce of gold KRM mines they are also getting around $300/gold oz of silver revenue.

    It follows that theoretically they could have negative cash costs after silver credits. This would mean that all the money they spend getting gold and silver out of the ground is paid for by silver sales, meaning they get the gold for "free". Of course, it may not be theoretical the way silver has been going recently.
 
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