Скачать или смотреть Inflation is eating miners' margins but there is a saving grace - Exploration Insight's Joe Mazumdar

Magin compression has been ratcheting up over several quarters, said Exploration Insights author Joe Mazumdar.

On Tuesday Mazumdar and analyst Brent Cook sat with Kitco.

"Almost every cost center had gone up whether it's consumables, labor or energy. It's flat across the board. We're talking anywhere from 30% to 50%. And when you look at capital costs, we're seeing the [mines] that are getting into the news the most are the marginal-grade, large, milling, open pit operations," said Mazumdar, citing Cote and Magino projects.

In December Argonaut Gold announced a 56% jump in capital costs for its wholly-owned Magino project in Ontario, Canada. In May IAMGOLD said its Cote development project was challenged and withdrew cost guidance.

"Some of its scoping, but a lot is cost inflation. They're getting squeezed, but a lot of those precious metal companies are...balance-sheet-wise, in a much better spot than they were at the tail end of the last cycle."

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0:25 - Joe, a lot has happened. The Fed tightened on inflation concerns. I assume we are taking a harder look at cash levels?
1:22 - Joe, I always love your analysis of financials. We certainly saw more warnings about cost inflation in Q1. What leapt out to you?
4:20 - Are U.S. mines being challenged by regulation?
6:00 - Brent, you often bring up that one factor that is often over-looked when assessing a resource company: metallurgy.
9:20 - Joe, assuming the market is what it is, anywhere you want to look? Royalties, majors, mid-tier, developers?
10:55 - What's your top ideas right now?