Gold mine cash costs were $516/oz in Q4, 2009, $9/oz higher than in Q3, 2009, setting a new record. This is the headline finding of the new Fortis Bank Nederland/VM Group/Haliburton Mineral Services Gold Mine Cost Report. The publication shows that over a longer period costs have also risen – full-year data for 2009 shows the average cash cost was $485/oz, up from $470/oz in 2008 and just $280/oz in 2005, when the VM Group’s data series began. Although cash costs have risen sharply (73%) over this period, the gold price has risen further, 119%. Gold mine cash cost graph.pdf

Looking by region, South Africa had the highest cash costs in Q4, 2009, with an average of $706/oz. This was 6% higher than in Q3, 2009 and 57% higher than in Q4, 2008, reflecting mainly the appreciation of the rand. The lowest cost region was Latin America, with cash costs of $381/oz in Q4, 2009.

The report, a collaboration between Fortis Bank Nederland/VM Group/Haliburton
Mineral Services, includes cost reporting from more than 80 gold mining companies with 232 mines in the most recent quarter. It is available open access and will be released quarterly. For more information on the report go to www.virtualmetals.co.uk