Hi ValueIn, I can think of one scenario. It's a long story,...

Hi ValueIn, I can think of one scenario. It's a long story, which some of us believe is connected to the last two cr at 21c and 29c.

Cut to the chase, BDR capitalised approx. $50M in mining costs into the balance sheet for the FY 2016, thereby reducing the AISC for that FY. As these costs are intangible assets, they need to be expensed off going forward into future FYs. So it is likely to increase the AISC for this FY, despite the higher grades mined. In other words, the chooks are coming home to roost.

It is a P&L accrual accounting treatment. The cashflow should not be affected by amortisation of intangible assets because the corresponding outflow of cash was already accounted for in FY 2016.
Cheers, R.