With gold prices above $1,400 an ounce, the mining industry is generating a profit. For instance, Barrick Gold (NYSE: ABX) estimates an “all-in sustaining costs” of about $1,050 and Newmont Mining (NYSE: NEM) calculates about $1,150 for 2013.
Dough Groh of Tocqueville Gold fund, though, believes that the true all-in cost is around $1,350 an ounce due to new mine development costs. Nevertheless, Groh remains optimistic about “management turnover, better capital allocation and reduced cost pressures.”
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Max Chen contributed to this article.