Spot gold's tumble to a half-decade low may have injected fear into the hearts of many gold miners but not in Australia, where the lower local dollar is cushioning the impact of the fall.
"We are benefiting from a lower Australian dollar. Whereas the U.S. currency gold price is lower, Australian gold prices are at a good level," explained Ian Murray, executive chairman at Gold Road Resources.
Speaking to CNBC on the sidelines of the annual Diggers and Dealers mining forum in Kalgoorlie, Western Australia, Murray is one of several Australian gold explorers breathing easy amid an ongoing commodity rout.
"If you bought an ounce of gold every day over the past five years, your average cost would be A$1435 an ounce. The gold price today is A$1500 per ounce. U.S. gold prices have declined, but we've had the Australian dollar also decline and that's more than offset the U.S. price decline."
Indeed, the Australian dollar is nearly 11 percent lower year-to-date, compared with an 8 percent gain for the U.S. dollar index. Meanwhile, spot gold in U.S. dollars crashed 8 percent during the same period.
Many Australian gold miners pay operating costs in local currency, so a depreciating Aussie acts as a saving grace for them and helps overcome the flood of new supply.
Revenues aren't the sole performance indicator for gold miners; margins are also key, making any form of cost-saving a huge benefit, explained Greg Foulis, CEO of Kingsgate Consolidated .