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Ann: March Quarterly Activities Report, page-19

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  1. 2,426 Posts.
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    Hi, it was my own personal estimation/calculation to take with a grain of salt (I included all costs even taxes and financial debt servicing costs), however it really depends on your definition of all-in-sustaining costs, there is no GAAP (Generally Accepted Accounting Principles) definition, and there is a hot debate in the gold mining industry on how to define and calculate all-in-sustaining costs in order to arrive at a fair comparison of operating costs per tonne across various producers/explorers (the world gold council published a guidance for this matter).

    I highly recommend reading this article for a nice introduction on the subject :
    http://www.investivdaily.com/the-crazy-world-of-mining-costs/

    Some interesting quotes (highlights Bold and Italic are mine) :

    Cash Cost, Total Cash Cost & Total Cost

    Cash costs include the costs of production at site level per unit of output. Thus, the regular costs for operating the mining process.

    As each mine is different, so are the cash costs. Some miners include smelting or refining costs and deduct by-product benefits while others don’t. In any case, cash costs don’t include head-office costs, taxes, exploration, depreciation, depletion expenses, and financing.

    By adding off-site costs, head office costs, and sometimes interest, we arrive to total cash costs according to one source.

    A second source states that by adding sustaining capital—the capital required to keep on the lights at the mine—to the cash costs, we get total cash costs.

    In order to solve the ambiguities around mining costs, the World Gold Council published a guidance note on all-in sustaining costs and all-in costs for miners to use.

    All-in sustaining costs are really an extension of the vague cash costs discussed above. Sub-total costs would be the cash costs and all-in sustaining costs, the total cash costs and all-in costs would be the total cost.

    Costs not included in the guidance are income tax, working capital, financing charges, M&A costs, and impairments.



 
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