Beardy,
MML state that the sustaining level of development ore is c. 30% of total ore for a running total of 100 working stopes.
However, that 30% of ore is blended with stope ore at the mill and is therefore expensed as part of the operating costs and appears as part of 'Cost of Sales' in the P&L statement.
Underground mines do have ongoing development costs in order to provide access to fresh stopes along existing levels and also at new, deeper levels, over time. But a substantial part of the development costs is capitalised (and annually amortised along with capital depreciation in the D&A component of Cost of Sales) because shafts, drives, ore passes, haulage tracks, etc, etc, remain an essential part of mine infrastructure throughout the mine life. Hence the carried amount of development expense remains a significant part of the Fixed Assets as shown in the balance sheet (currently US$261.7m) compared to US$115.4m for plant and equipments.
I do have some other comments and estimates that might be relevant to your post but will have to leave those for another time.
CPDLC
- Forums
- ASX - By Stock
- Ann: September Quarter 2014 Gold Production
Beardy, MML state that the sustaining level of development ore...
-
- There are more pages in this discussion • 10 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
LU7
The Breakdown: Lithium Universe talks refinery design and lithium processing in strong preliminary feasibility study for Bécancour
NEWS
Gold nuggets unearthed at Comet Well ahead of drilling! Discoveries continue as exploration ramps up
Add X64 (ASX) to my watchlist
(20min delay)
|
|||||
Last
57.0¢ |
Change
0.000(0.00%) |
Mkt cap ! $129.8M |
Open | High | Low | Value | Volume |
0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Featured News
X64 (ASX) Chart |
Day chart unavailable
The Watchlist
AHK
ARK MINES LIMITED
Ben Emery, Executive Director
Ben Emery
Executive Director
SPONSORED BY The Market Online