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<p>[QUOTE=&quot;Cloudsweeper99, post: 1454021, member: 3011&quot;]If the price drops so that companies are just covering their incremental cash cost, they will continue producing.&nbsp; But as the higher grade reserves deplete, production will trend down, and if the price never reacted, production would eventually go to zero.&nbsp; Companies must be able to show a business plan to investors and bankers that cover their total cost plus a return to investors in order to obtain financing for the next project that will replace the reserves being used up today.</p><p><br /></p><p>I&#039;m not saying this will happen.&nbsp; I&#039;m saying it can&#039;t happen for more than a relatively short time.&nbsp; So I consider the total cost of production to be a long term floor on the price.[/QUOTE]</p><p><br /></p>

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