When YOU are calculating cash costs or production costs please use the Gold Institute Standard suggested table. It avoids ambiguity.
I have included it below ( it seems to refer to North America and I expect Australia follows)
GOLD INSTITUTE STANDARD FOR CALCULATING PRODUCTION COSTS LAYOUT EXAMPLE ONLY Gold Industry Adopts Revised Production Cost Standard
Revised Standard for Reporting Production Costs Per Ounce of Gold (1) Direct mining expenses (2) $ XXX Stripping and mine development adjustments (3) XXX Third-party smelting, refining and transportation costs By-product credits (4) XXX Other XXX Cash Operating Costs xxx Royalties (5) XXX Production taxes (6) XXX Total Cash Costs XXX Depreciation (7) XXX Depletion \ amortization (8) XXX Reclamation and mine closure (9) XXX Total Production Costs $ X X X
(1) Per ounce of gold produced or sold in accordance with each company's own reporting practices. (2) Direct mining expenses include all expenditures incurred at the site, including inventory changes, site specific corporate charges (e.g. insurance, computer services, etc.) and in-mine drilling expenditures that are production related (e.g. in-fill drilling, grade control, etc.). Exploration expenditures are not included in direct mining expenses. In case of a joint venture or partnership, management or overhead fees charged by that operation's operator, that are in addition to site-specific corporate charges, should be included in each company's mine-site cash expenditures. (3) These adjustments include normalizing of stripping costs at open-pit operations and normalization of costs associated with developing and accessing new production areas in underground operations. Footnote disclosure of the total amount of these adjustments is encouraged. (4) When by-product accounting is employed, if the by-product represents more than 5% of an individual mine's revenues, the effect on reported production costs of using co-product accounting also should be disclosed. This information should be reported on a mine-by-mine basis in each company's external reporting documents. (See Exhibit 1 for example of additional disclosure requirements.) (5) Information with respect to royalties, on an operation-by-operation basis, should be disclosed in each company's external reporting documents. (6) Includes Nevada net proceeds tax, South Dakota severance tax and similar taxes. Ontario and British Columbia provincial mining taxes are considered to be forms of income taxes rather than property taxes, and as such should not be included in production cost calculations. (7) Treatment of capital lease payments should follow the normal accounting practice of being excluded from cash costs but included in noncash costs as part of depreciation expense. (8) Additional footnotes may be required to disclose what amounts have been included or excluded in the calculations (e.g. includes purchase accounting adjustments, but excludes SFAS 109 tax accounting adjustments). (9) Includes costs of final site reclamation, which are accrued on a units-of-production basis over the life of an operation. To the extent that an operation elects to perform a portion of this final reclamation concurrently with active mining, these costs also should be included in noncash production costs. (10) Only line items in excess of 5% of total costs need be separately disclosed. All other items may be grouped and reported as "other." (11) A reconciliation of production cost information to the income statement should be provided. (12) Disclosure of production costs on an operation-by-operation basis is encouraged. (13) If gold equivalents are reported, both the nature and quantity of the underlying metal and the number of resulting ounces of gold equivalent should be disclosed. This information should be reported on a mine-by-mine basis. (See Exhibit 1 for example of additional disclosure requirements.) Exhibit 1 Example of New Additional Disclosure Requirements XYZ Mine ($ 000's) Revenue % Au, Ag & Cu Au & Ag Total production costs $10,000
TAM Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
