Hebba Investments
Long only, value, contrarian, gold & precious metals

What It Really Costs To Mine Gold: The First Quarter Allied Nevada Gold Edition

Summary

Allied Nevada Gold (NYSEMKT:ANV) provides investors a company with quite a bit of reward and risk. On the one hand, true all-in gold-equivalent production costs were very good and were under $1000 per ounce - which ranks it among the lowest in the industry for the quarter. On the other hand, production numbers were down, and because of operational issues the company is producing more gold than it can process and sell. This bottleneck is forcing the company to keep high inventory levels of unprocessed gold and silver.

Finally, its Hycroft mine expansion plans, a key goal over the next few years, may provide the company with significantly higher production numbers - and thus higher earnings. But...

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