Depending on the grade of hide, yes, the material cost can easily soar over $600, and depending on the construction techniques used (particularly handstitched moc/split toes), labor costs can be staggering when only 2 or 3 people in a given factory can execute the design.
Shoes do not magically appear out of nowhere. You have to pay clickers to cut the hide, lastmakers to shape the last of the shoe (that determines the silhouette and fit), and that's before you even get to the people who actually put the raw materials together to make a functional end product. Many, many pairs of hands touch a single pair of shoes before it passes QC and leaves the factory, where logistics and retail take a part of the cut. When you add all their wages together, add the unavoidable overhead costs of operating under a traditional retail model, and add in the material costs, $600 is really not that crazy for a high quality, well made product.