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Eastern Resources CEO Patrick Imeson on the costs and profit margin for gold mining and the outlook for gold prices.
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Operates three gold mines in the state of Montana that are helping bring hundreds of needed jobs in big sky state.
Joining us now for this week's small business big ideas.
Patrick Imus and CEO of eastern resources Patrick thanks for joining us experiments on so you're strategy and country to many other companies that -- to go and emerging markets you wanna do your business all in Montana.
Yemeni people can hire we can be in about the 2723.
-- forty.
Range and -- that is due to to look for gold those three -- now.
You claim -- to have more than 2.5.
Million ounces of gold reserves and all that that's -- four billion dollars at today's price.
-- -- at 17100 dollars in that range 18100 lately how much of the cost you to take an ounce out of the ground.
Where an average of about 500 dollars an ounce forecast cost that's a pretty nice profit margins gold at 17100 everyone says that this gonna keep going up.
How low would gold goes.
Before you would stop digging because it just doesn't pay for -- we probably be in the 750 range where our margins would start to started getting diminished.
So it's 715 bucks -- gold you guys can make a profit.
And and to make a nice penny at that well that's pretty good now be at full production you say that at golden dream mine in -- -- you can take.
5000 -- 6000 ounces per month that's correct yes.
It's a relatively small underground operation but that that be the production rates if you know -- I once was told -- read that.
If you take all of the gold in the world -- been mined in all of history that first all 96% of it still is in circulation in some form.
But the second of all it only adds up to like three or four Olympic size swimming pools had heard this and I've heard that story yeah I think that's probably correct as probably -- -- So this entire trillion dollar market -- the right figure might be.
Is over for three or four swimming pools worth of gold that that's probably about right doesn't that just -- the least bit crazy you I mean that the when you look at the density of -- and you know it's it's price because it's a precious metal was not a lot of around.
Now technology has not.
You know usually technology brings down the cost of things.
And yet a decade ago it cost a 165 dollars per ounce to -- gold announce up to 500 -- and still so expensive.
Why is part of that's not solutions technology -- but it's more of the equipment side of it there's inflationary spiral going on capitol -- right now in terms of equipment cost.
Our wages employees that that sort of thing.
How much of the cost today is to abide by regulations in the -- decent movie critics vs a decade ago what percentage roughly I mean I I think the com.
Permitting regiment is getting this is is a tough regiment for any projects in the US.
It's probably more.
Beneficial because we do have a rule of law -- as -- some of the emerging markets where you might be seeing a bit of -- grab going on now but what percentage -- -- price of gold is it is that regulation do you think -- -- stuff I mean I'd say it's probably in the 150 dollar an ounce range and how.
Hull of the to 500 dollar cost a 150 bucks is from regulation when not on an ongoing basis but in speech in particular when you -- -- project when you're going to the permanent processes -- if there's a lot of regulation I think that's -- that's -- -- -- thank you so much of it was Patrick Anderson of eastern resources thank you.
