indochine future share price calcs, page-22

Nectar38
Another point

Should cap ex be regarded as a part of LOM production costs?

I don't think this is strictly correct.

Cap ex refers to the acquisition of capital items and expenditure.

It would not normally be considered as an actual component of production expenditure.

A CAPITAL ITEM IS NOT A COST, it is an asset of the company.

This is simple tax law for beginners 101.

If the inclusion of CapEx items is incorrect in production costs (I believe this is the case for a number of reasons) then the actual properly stated cash cost on producing one oz of gold on the numbers presented is $560 per oz.

likewise, I find some previous calculations lacking any recognition of the actual 'substance' of 'things' involved in production costs.

Just for a start, depreciation on plant, and so many other expenses giving tax credits in PNG.