Weak oil price, currencies helping miners stay afloat

Lower oil prices and weakening currencies – the Canadian, Australian dollar and South African rand have fallen 6–8% against the USD in recent months – have take the some of the sting out of falling commodity prices.

But with iron ore down 40%-plus, met coal at seven-year lows, gold and silver near four-year lows and copper down 10% year to date, it’s not going to be enough for many miners:

A simple rule of thumb for commodity producers is that price changes have a two-to-one impact on the bottom line, while cost changes have a one-to-one impact.

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