The final criterion of the payability of gold production must necessarily be the cost per ounce. While the cost per ton or per cubic yard is a convenient comparative measure, and a necessary one for operating control, it is obviously insufficient as a means of judging whether or not, in a given set of circumstances, a gold production operation can be carried out economically.. An alternative method, which brings in the ton or cubic yard as a unit of measurement, is to determine what the cost per ton or per cubic yard is equivalent to, in terms of pennyweights or grains at the ruling price of gold. But this is really only another way of stating that the cost per unit of product is the ultimate measure of profit or loss, and not the cost per unit of input material.It is accordingly of interest to determine the cost per ounce of Australian gold production and to compare it with the cost of gold production in some other parts of the world which are important gold producers. The attached Appendix, which it, is believed comprises practically all Australian mines of any consequence (except Big Bell and the de Bernales group, for which. insufficient information is available), shows this information for financial years ending between 31st December, 1938, and 31st December, 1939, the production of gold dealt with being some 1,084,000 oz., or 66% of the total Australian production for 1939. For comparative purposes the cost of producing gold at representative mines in New Guinea, New Zealand, Fiji, Canada, India, West Africa and Rhodesia, and the average cost of production at the Rand mines, has also been included.It is obviously necessary in a study of this sort that the basis of the cost should be clearly set out and should be as nearly as possible uniform. The "cost" as calculated herein comprises the following items: