AISC does take in depreciation but only for "sustaining" Capex. For example pre-stripping will be depreciated as will infill drilling. The issue is "does the capex apply to existing resources" in which case AISC does take that into account. If the expenditure is on "green fields" then it isn't taken into account in AISC. It should also be based upon product sold rather than mined. The main problem is that AISC is NOT audited so it can be a bit of a moving feast and not all producers stay to the rules (i.e product sold).
Ann: Board makes Final Investment Decision to develop Honeymoon, page-25
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