I'll take a step back, as its good to acknowledge and consider...

I'll take a step back, as its good to acknowledge and consider alternative points of views. Some of what you say is valid.

A lot of the producers are not increasing cash at bank or dividends (or in some cases profits), but this is mainly because they are sinking a lot of margin/cashflow into development and exploration. They may not have had the ability to do that 5 years ago so now is the time to use their surplus cash to grow. No doubt its what they see as the best way to use that cash, and if done correctly should value add down the track.

My understanding is development expenses (cutbacks, shafts, declines etc to access new areas) are usually expensed not capitalised. Exploration expenses can be expensed or capitalised depending on their nature (infill extensional v greenfeilds). Happy for any correction or clarity here.

Overall point being a lot of gold producers are sinking their cash back into building the business, which is what any good growth company would do.