National Post reports with higher oil prices, open-pit mining is becoming very expensive and harder to be profitable.

Investors got a good reminder of that fact this week from a small miner called GBS Gold International Inc. The stock lost two-thirds of its value after the company raised its cost guidance and warned that it may have to lower production following a review of its operations.

Andrew Kaip, Haywood Securities analyst wrote:

“With ongoing operational issues at Brocks Creek eroding cash and bullion levels to $11-million from $17.5-million at the end of Q2, we believe GBS will require additional financing to execute its development strategy.”

For complete story, click this link. To view GBS Gold’s company profile, click here. Follow developments in gold mining and exploration for free. Sign on to the Gold Investing Newsletter.

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