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RE: Why mines close down (featuring @clint01 as author)
Great article. Many gold mines have been high grading in the last few years due to the lower gold prices and higher AISC (all in sustaining cost). High grading is terrible for the long term prospects of the mine but many companies had to implement this process just to survive. As a result we will see even less supply in years to come and possibly additional mine shutdowns.
Oh yes. And coupled with reduced fresh capital for large projects - the end for many of these great mines is sooner rather than later.
This is why I like the royalty/streamers :)
My research is into the impact of the mineral resource royalty on narrow tabular precious metal deposits. Because it's treated as a cost - it can have an impact on cut-off grades and in some cases - a massive impact on the minable reserve. Seen in one case a reduction of 20% minable reserve after a 3.5% royalty cost