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Cost curve

A cost curve plots the cost of production of individual mines within the industry on a cumulative basis on the X axis against operating costs on the Y axis. The curve can be used by analysts to demonstrate how much of an industry’s production is below the spot price of the commodity (and thus profitable) or by mining companies to highlight the relative cost position of a particular mine. Cost curves are most often used for gold, copper and iron ore. Costs are usually cash costs in US$/oz (gold), USc/lb (copper) or US$/t (iron ore).

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