Even though the AISC is $1517/oz that is an accounting figure that is not audited. AISC considers sustaining costs but does not include growth and development expenditures. Many gold mining companies need to expend on exploration and mine extension, these cashflow are in addition to what they spend on production and sustaining capitals on existing properties. Thus, you will see that DCN has a relatively high production costs and then they continue to spend on exploration and development. This is also in addition to them repaying debt. All up, that is why the company is seeing their cash balance reduce and net debt increasing for this quarter.
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Ann: Quarterly Activities and Cashflow Report, page-35
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