Like the rest of the mining industry, the worlds largest gold miner by volume is going to be hit by falling margins the second half of this year. Actually, it is possible that these margins are going to fall so much that the company will actually be making a loss at some of is mines.

According to Barrick Gold’s first quarter earnings release, these were the all-in costs of producing an ounce of gold in three of its key mining regions:

So Barrick could already be producing gold at a loss in its Australia Pacific region.

There is also market buzz that gold mines will start to close below $1,200 an ounce — and Barrick has just announced that it will lay off one-third of its corporate staff. The party is over.