The Financial Post reported that 2012 was a difficult year for gold miners, despite elevated prices, mostly due to escalating costs for everything from production to labour.
As quoted in the market report:
One significant factor has been the skyrocketing of miners’ costs. The costs of everything from energy to labour to engineering have risen faster than the price of gold. This has crimped the profit margins of the mining companies. In turn, investors have taken an axe to the value of the reserves being uncovered by exploration companies. For the junior companies, this has made it a difficult environment in which to raise capital since a weak equity environment for gold companies’ shares has made investors skittish to invest in these companies.
|Otis Gold Corp. (TSXV:OOO) is a near-term producer with an NI 43-101 resource 520,000 ounces of drill-indicated gold at its Kilgore Project in Idaho. Work is scheduled to begin soon at the North Target area of the Kilgore Gold Project. Connect with Otis Gold Corp and never miss a catalyst.|