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'They're making a lot of money' - Paul Harris says current gold price still favors miners
Although gold prices are down from the start of the year, miners still have healthy margins at the current price levels, noted Kitco correspondent Paul Harris.
In February Harris recorded Kitco Roundtable at BMO Global Metals, Mining & Critical Minerals Conference with Mining Audiences manager Michael McCrae and Adriatic Metals CEO Paul Cronin.
Adriatic Metals (ASX:ADT) will commence production at its Vares silver project in Bosnia & Herzegovina in Q3 of this year. Adriatic describe Vares as one of the highest margin polymetallic projects globally. Post-tax NPV is estimated at $1.062 billion and IRR at 134%.
After gold got as high as $1,960 ounce in January, Harris noted that the BMO conference opened in late February with the metal suffering a four-week slide dipping into the low $1,800 range.
"Perhaps [the drop is] a little bit painful, but the producers...still have 40% to 50% margins," noted Harris. "They're making a lot of money."
