Rising costs have been the biggest headache for gold mining companies over the past few years. While the price of gold was rising, this was not a problem but now the price is falling this could start to cause some serious problems for the miners.

All-in production cost of gold – full year guidance:

Meanwhile, the price of gold could have further to fall…

If the gold price moves into the yellow zone higher cost producers will have to start cutting costs aggressively.

If gold falls through, into the red zone there will be much less supply in the market, even gold cannot be sold at a loss.