Total costs at Lydian International’s (TSE:LYD) Amulsar gold project are almost a third lower than the global average, according to new research.
The Armenia-based project’s total or all-in costs are US$750 per ounce against an average of US$1,211 for other producers, said Canadian broker RBC, which carried out the comparison for Lydian.
The difference between the total cost and gold price is Lydian’s profit margin and Tim Coughlin, Lydian’s chief executive, said the comparison showed “how remarkably robust the project is”.
RBC based its calculation on last year’s feasibility study and included mining, corporate and administration costs, sustaining capital expenditure (capex), exploration costs, royalties and transportation.
On the more widely used cash cost measure, Lydian also scored better than its rivals at US$469 per ounce compared to a global average of US$738, said RBC
Coughlin added: “Work continues on optimising design, production and overall cost parameters at Amulsar with a feasibility study update expected in the third quarter of this year.
“In these markets it helps to have all bases covered so as well as providing a "scaled-up" scenario which maximises debt-capacity and reduces payback, this study will also test a "scaled-down" option for Amulsar which invokes trucking as opposed to the conveying of ore for the initial production years of the mine.
“The permitting for the new mine layout is in the process leading up to community consultations and government and regional support for Amulsar remains strong.”
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