AISC cost vs Realized EPS 3rd Quarter 2023The AISC cost in 3rd quarter ($1300/oz) resulted in an eps= $0.0/sh (actually a negative eps that rounded to zero). However, the realized AU EQ sale price was $1848/oz... or a $548 differential.
It was surprising then to me that this positive differential did not result in a higher eps.
Today I heard an analyst (don't recall his name) debating the usefulness of AISC in gold stocks as a good indicator of projected earnings. The company he used in his example was Barrick but could be any gold stock in expansion mode. What he indicated was that when Barrick was in a high expansion mode, the true cost= AISC + the project capital expense remaining.
This would appear to be where KNT is with funding stage 3 + also funding a portion of stage 4.
... but the interviewer asked how to determine what is the remaining project capital expense.
Analyst response: At earnings call, analyst should specifically define the original project cost then ask how much has been spent so far and then what the final cost needed to complete.
In short, KNT has spent X so far. How much more capital Y is needed to complete + timeline.