The commentator is talking about the average overall price of production, which is about what she says it is. But it is possible to go below that price. The price of production varies between producers, and some will hold out waiting for the price to go up so the impact of lower prices will vary, and some will high grade to reduce their costs, so most we can say is that as price drops so does supply in both the short term and potentially in the long as the larger producers high grade, reduce their resource base, and store up problems for the future when the price is restored. Ike