“We think further cuts are likely over the next 6-12 months as companies try to adjust to a lower gold price environment.”
Gold mining companies, though, are more optimistic about their overall gold production costs. For instance, Barrick Gold (NYSE: ABX) calculates that its all-in sustaining costs at around $900 to $975 per ounce for 2013, compared to Citi’s estimated all-in costs of $1,600 per ounce, reports Nat Rudarakanchana for International Business Times.
The Market Vectors Gold Miners ETF (NYSEArca: GDX) has declined 45.7% year-to-date and the Market Vectors Junior Gold Miners ETF (NYSEArca: GDXJ) decreased 47.4%. [Amid Declines, Outflows Seen at Gold Mining ETF]
Market Vectors Gold Miners ETF
For more information on gold stocks, visit our gold miners category.
Max Chen contributed to this article.
