ARGONAUTGOLD wrote: The company’s 2024 guidance isn’t disappointing when you interpret it correctly. If you exclude CapEx, the gross profits and revenue are quite substantial. The company has been discussing optimizations that necessitate capital, so the CapEx shouldn’t come as a surprise. The potential for significant growth does come with costs.
As per the company’s Q3’23 Management Discussion and Analysis, the All-In Sustaining Cost is defined by the World Gold Council as an extension of the cash cost definition. It includes corporate and site general and administrative costs, reclamation and remediation costs (including accretion and amortization), exploration and study costs (both capital and expensed), capitalized stripping costs, and sustaining capital expenditures. These components represent the total costs of producing gold from current operations.
However, AISC excludes income tax payments, interest costs, costs related to business acquisitions, and items needed to normalize profits. As a result, this measure doesn’t represent all of the company’s cash expenditures. Furthermore, the calculation of AISC doesn’t include depreciation expense, as it doesn’t reflect the impact of expenditures incurred in prior periods. Hence, it’s not indicative of the company’s overall profitability.
As for the criticism of management, they had discussed this before implementing it. If you had read the Q3’23 Management Discussion and Analysis, as well as kept up to date with the company’s most recent news releases, you would have known how they calculate AISC and the additional capital for optimization and expansion. Let’s be honest, it’s not the management team’s fault if you failed to read and keep up to date with the company, right?
If you’re feeling overwhelmed, selling your share could alleviate the stress that your posts seem to indicate you’re experiencing.