- We pick a bunch of juniors, mostly goldies but a few silver mining companies too.
- We take the gold or gold equivalent ounce production total for each one (and in the case of the silver miners, we convert silver to gold equivalent ounces at 70:1).
- We check out the quarterly G&A figure as posted by each company.
- We do the math.
- We also add in a couple of majors as a guideline, to show what the bigger boy companies typically run as a ounce-per-G&A ratio. The examples are Kinross (K) and Barrick (ABX), and their results are typical of the majors' sector.
Rio Alto (RIO.to) (RIOM) comes in very low due to some specific factors for 3q14, but it typically a low ratio for all its quarters and wouldn't get over $30/oz normally.
Endeavour Mining (EDV.to) is clearly efficient in its offices, good job done.
The majors' type average is around $55/oz to $65/oz, so any junior which emulates that level is doing well. Endeavour Silver (EDR.to) (EXK)and Richmont Mines (RIC.to) qualify, Lake Shore Gold (LSG.to) at a pinch).
The acceptable limit? Let's say $100/oz.
Argonaut (AR.to) isn't shy about spending money in its offices, apparently.
Gold Resource Corp (GORO) is a joke.
PS: What, the table? Yeah sure, here you go:
|Ticker||3q14 G&A ($m)||Oz Au or AuEq prod||$ G&A/oz|
|in case of silver mines, conversion to AuEq done at 70/1|