Check out this chart of the gold price and mining costs around the world. Cost of production is now close to costs. It is only a matter of time before mines close. I was caught with one of my investments shutting I down this year and lost too much. Another market darling here in Australia, SLR, was up to $4.00 and today plunged 35% to just 37c.

Mines like these are closing all over the world. This means  one thing…shrinking production at a time when demand is running at twice global production rates (China importing 2,000 tonne alone this year). This is the logical end for unnatural price manipulation: Unlimited demand and shrinking supply. We have to be getting very close to an end to the price suppression.

I thought the low was in last week but was proved wrong. I will be very supposed if the lows made this week are not the final lows. I am all in and happy to be back in a great mining stock (MML). Cash costs are $300 an ounce, no debt, $30m in the bank and production about to expand from 75k oz to 200k oz. All this on top of a crushed share price.

God bless


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