pro's con's & conjecture, page-53

"Ore stockpiles are valued at the average cost of mining and stockpiling the ore, including haulage"

I originally glossed over our inventories valued at
$2,933,980. We know there is 104,900 tonne stockpiled with an average grade of 4.8% Cu eq for 5,035.2 tonne of copper or 11,077,440 pounds. The value given to this asset means our C1 mining costs at the moment stand at 26 cents a pound. Incredible if you ask me.



i. Inventories

Inventories are stated at the lower of cost and net realisable value on a ‘first in first out basis’. Cost comprises direct materials and delivery costs, direct labour, import duties and other taxes, an appropriate proportion of variable and fixed overhead expenditure. Costs of purchased inventory are determined after deducting rebates and discounts received or receivable.

Cost is determined on the following basis:-

? Copper and other metals on hand is valued on average total production cost method

? Ore stockpiles are valued at the average cost of mining and stockpiling the ore, including haulage

? A proportion of related depreciation and amortisation charge is included in the cost of inventory.

Stock in transit is stated at the lower of cost and net realisable value. Cost comprises purchase and delivery costs, net of rebates and discounts received or receivable.

Net realisable value is the estimated future selling price in the ordinary course of business, based on the prevailing
metal prices, less the estimated costs of completion and estimated costs necessary to make the sale.