That capitalisation on the balance sheet was what we learnt in accounting and it is correct, capital costs should be amortised over their useful life, but in mining the rules are different. Capital costs are allowed to be claimed immediately as expenses, and always are. This is peculiar to the industry it seems, but a lot of mines would never get off the ground without it, with tax being deducted from cash flow when it is most critically needed for development. More to pay later if the mine gets up and profitable. Have to get there first.
MLX Price at posting:
26.3¢ Sentiment: Hold Disclosure: Held
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