HI M7, Im not sure if you fully understand how All In Sustaining...

HI M7,

Im not sure if you fully understand how All In Sustaining Capital works.


If you open up Quarterly report ending Dec 2016, on page 2.

You will see that they TGS summaries AISC for all four quarters in 2016 year.. You will see that the report includes "mining costs" .. yet... Tiger Resources didnt conduct any mining until end of 2016.



Proof: Mining recommenced at Kipoi Central during the quarter, with 103,652 tonnes of waste material mined from the Kipoi Central pit.


The mining was done a few years before and it was added to stockpiles.. so why would TGS put "mining costs" down for those quarters when they clearly didnt do any mining??


Answer is simple, AISC is not concerned with when the actual act of mining occurs, for instance if you mine 1mil tons of ore in first month.. and nothing more the entire year.. these mining costs will be passed on to other quarters in AISC and not in the quarter they actually happened in. This is because from an accounting perspective the cost occurs when an item is consumed to produce a goods.

If you make zero tons of copper cathode in a quarter and you spent 10mil on mining ore, AISC = $0 because you didnt make any units.. Likewise, If you make 10,000tons of cathode and you did no mining instead you use stockpile of ore, you'e AISC will still include mining costs from previous quarter.

Relating back to your comment:

"I don't know why nikec is always making the same wrong calculation..

The 2.26$/lb aisc from the 2nd quarter '17 was without any mining costs (because they stopped mining because it was too expensive at this time because of lower copper price than today and they instead preferred to do LOM works)."


Clearly you have no idea what you are talking about, pick up an accounting book and read, because AISC will include mining, readless if you take it from stockpile or if you mine it that quarter. If you have no stock piles and you didnt mine then AISC = 0 because you cant make copper cathode without ore.. jesus...