AIC is not a measure of profitability during the ramp up stage of mining.
Contrary to your belief it includes capital expenditure to increase production.
"AIC is an abbreviation for “all-in costs”, a measure, defined by the World Gold Council, as the cost of sustaining current mining operations and expanding production. "
If your in the business of renting property and making a profit of $100k a year you don't turn that into a loss of $900k by buying $1m building to increase your rent income. It's all about spending money to make money. Spending the capital they just raised to develop Nugent this year will be included in AIC but that certainly doesn't make Kanmantoo less profitable.
Given the expenses charged against revenue include keeping the plant maintained in tip top condition and in HGO's case the Capital Cost of developing the mine down to the lodes(major capital) that is capitalised has an indefinite life given all the lodes are open at depth EBITDA is the best measure of the underlying profitability of the operations. IMHO. 2025 forecast EBITDA is US$ 1.92/lb of copper produced.
I refer to HGO as the Hidden Gem Opportunity because, amongst many other very valuable assets that don't get a mention in the list of assets, it has a fully operational 3.6m tonne processing plant that has a replacement cost of circa $475m which is valued at a depreciated cost of $22m.
HGO Price at posting:
3.8¢ Sentiment: None Disclosure: Held
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