I have'nt had to deal with accounting for development costs in a while but my hazy recollection is that mining companies used to have the option to capitalise any development costs and then expense them at the same time that the actual extraction of the ore which relied on the previously developed area took place. I think that there has been a change to accounting standards which now requires these costs to be expensed as incurred.
This practice led to situations where companies would capitalise costs during a year of low profitability in order to prop up there p and l and expense costs (sometimes at a higher rate) in the good times whihc depressed the p and l. Again I think there has been an accounting standard change to avoid this situation from arising...
In terms of Mundo I am a long term holder and see the future potential in the stock, primarily based upon the go forward plan and the reduction in risk as multiple mines/ore sources come on line.
As recent posters have highlighted the mining game relies upon tonnage, grade and recovery along with a focus on the management of total costs to produce a return for holders.
- Forums
- ASX - By Stock
- MUN
- reply from jl about the quarterly
reply from jl about the quarterly, page-12
-
- There are more pages in this discussion • 12 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
Add MUN (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
CCO
THE CALMER CO INTERNATIONAL LIMITED
Anthony Noble, MD & CEO
Anthony Noble
MD & CEO
Previous Video
Next Video
SPONSORED BY The Market Online