Once that capital is sunk, production economics will hinge on
the marginal production costs for decades.
«Gold Drops Below Cash Cost, Approaches
Marginal Production Costs» offers a marginal cost of production just over $ 1100.
But the difference in
the marginal production costs between print and digital is significant.
It's reasonable to view part of the weakness in gold stock prices as being the result of spot gold falling close to
its marginal production cost (which has gradually escalated over the past 15 years).
While
the marginal production cost issue undoubtedly makes the current extreme in the gold / XAU ratio less compelling than it might appear otherwise, we do believe that precious metals shares are quite depressed in valuation terms.
But
marginal production cost has historically provided a good support level for spot gold, and we would expect any increase in gold prices to quickly ease earnings concerns for these stocks.
It's reasonable to view part of the weakness in gold stock prices as being the result of spot gold falling close to
its marginal production cost (which has gradually escalated over the past 15 years).
But
marginal production cost has historically provided a good support level for spot gold, and we would expect any increase in gold prices to quickly ease earnings concerns for these stocks.
While
the marginal production cost issue undoubtedly makes the current extreme in the gold / XAU ratio less compelling than it might appear otherwise, we do believe that precious metals shares are quite depressed in valuation terms.
So, assuming there is
no marginal production cost to printing warnings, a rational business would apply as many warnings as possible to its products, even if they are completely inapplicable?
Not exact matches
Once supply and demand come back into balance, points out Fadel Gheit, Oppenheimer's senior oil analyst, prices should gravitate toward the
marginal cost of
production of new barrels.
Given the high
cost of shale oil
production, it's questionable much
marginal new U.S.
production will be able to displace established Canadian oilsands supply while also replacing
production declines in California, Alaska and the Gulf of Mexico.
By keeping prices below the
marginal cost of unconventional
production (about $ 75 per barrel), OPEC hopes that expensive oil
production will decline along with the fortunes of the companies engaged in these plays.
In textbook examples, commodities are usually sold for their
marginal cost of
production, though in the real world the price may be higher due to tariffs and other trade barriers.
Analysts expected the iron ore to be supported by the high Chinese
marginal cost of
production post c2012.
The
marginal cost of shale gas
production is $ 4 / mmBtu despite popular but incorrect narratives that it is lower.
Once silver cleared the
marginal cost of
production for Dolly Varden, which was at $ 16 / oz.
Turning to sectors, we continue to find abundant value among energy producers and their services partners, and we believe the price of oil will likely recover toward the
marginal cost of
production as supply and demand adjust.
LAGOS — As oil prices continue on the downward slide, Nigerian oil firms may be producing at up to $ 5 / barrel loss, as average
production costs for independent and
marginal field producers is between $ 30 and $ 35 / barrel.
Most
marginal field producers are producing above $ 30 / barrel, and with pipeline vandalism activities,
costs will shoot up by another $ 10 / barrel, so oil
production now is not sustainable.»
So we know that some long period of time from now, we'll be on a sustainable, low - embodied energy, crustally abundant advanced materials, advanced distributable, renewable energy; somewhere between here and there, a lot of capital equipment is going to become obsolete, because the
marginal cost of
production of it is so much more than the new way of doing it that the new way will put it out of business.
Marginal cost is the
cost of producing an additional unit of something after the fixed
costs of
production have already been absorbed.
«While this will involve major investments in primary
production, our results suggest that there will only be
marginal impacts on
costs and prices in the end - use sectors.»
Their
marginal extra
cost is offset by the
production of renewable energy.
Well, that money will have to come from something other than
marginal cost of
production... probably either author advance, or by publishing fewer books by more
marginal authors (those who sell less than 20,000 copies).
In all of these scenarios, the
marginal cost of
production is not going to be even $ 1 for a trade paperback and will rarely be over $ 1.50 for a trade hardcover (obviously the last big brick Harry Potter novels
cost a teeny bit more due to sheer volume of paper needed to print a 750 page novel, but not * that * much more), meaning that if we're talking
marginal cost of
production as the difference in price between a paperback and an ebook, we're not talking about a huge difference in price.
In short, the argument that ebook versions of a novel should
cost way less than paperback novels due to a lower
marginal cost of
production simply doesn't match the actual numbers.
The
marginal cost of
production is not the primary thing driving book
costs, whether ebook or otherwise.
Clearly the expectation that ebooks should
cost a lot less than paper copies of the books because of lower
marginal costs of
production doesn't match the reality that
marginal cost of
production really IS
marginal even for paper books.
One advantage we have at the moment is that acceptable
production values are low and most ebooks are simply facsimiles of p - books, cheaply produced at a low
marginal cost.
The logic is actually quite simple, the
marginal cost of
production for information assets is approaching zero.
Turning to sectors, we continue to find abundant value among energy producers and their services partners, and we believe the price of oil will likely recover toward the
marginal cost of
production as supply and demand adjust.
The
marginal cost of
production for a lot of crude oil that is shale related is around $ 50 / barrel, and that is where I think the market «equilibrium» will bounce around for a few years, until global growth picks up.
I was thinking about the law of diminishing returns with regards to
production, ie the first x amount of goods is the easiest to produce and once you expand the business and incur extra
costs, your
marginal profit decreases.
EPA believes this set - aside encourages early deployment of renewable energy projects by lowering the
marginal cost of
production of these resources within a state.
I call it Project Zero — because its aims are a zero - carbon - energy system; the
production of machines, products and services with zero
marginal costs; and the reduction of necessary work time as close as possible to zero... If I am right, the logical focus for supporters of postcapitalism is to build alternatives within the system; to use governmental power in a radical and disruptive way; and to direct all actions towards the transition — not the defence of random elements of the old system.
A global tipping point could be reached in 2025, when solar PV and wind power could become competitive with the
marginal cost of natural gas and coal
production, accelerating the transition.
«Well, at the
marginal cost of
production, you're not covering your fixed
costs.»
The structure of renewable technologies, which have a high levelized
cost of electricity but almost zero
marginal cost of
production, gives renewable energy priority in the order of dispatch.
After twenty years of experimentation, carbon pricing has failed to produce anything more than
marginal changes in the
cost structure of
production.
New material relates to: Requests for further
production, Demands for particulars, Preservation of evidence, Spoliation, Discovery Plan, Proportion and
Marginal Utility,
Cost Shifting, Admissibility of Internet Information, Privacy Issues, Third Party Information and Norwich orders, and Anton Piller Orders... [more]
New material relates to: Requests for further
production, Demands for particulars, Preservation of evidence, Spoliation, Discovery Plan, Proportion and
Marginal Utility,
Cost Shifting, Admissibility of Internet Information, Privacy Issues, Third Party Information and Norwich orders, and Anton Piller Orders.
The price of information is being driven toward its
marginal cost of
production.