TSXV:MGR.H - Post by User
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MacRellenon May 25, 2022 8:16am
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RE:RE:RE:Magna Gold Drastically Undervalued
RE:RE:RE:Magna Gold Drastically UndervaluedAdam Hamilton on cash costs vs. AISC:
Cash costs are the classic measure of gold-mining costs, including all cash expenses necessary to mine each ounce of gold. But they are misleading as a true cost measure, excluding the big capital needed to explore for gold deposits and build mines. So cash costs are best viewed as survivability acid-test levels for the mid-tier gold miners. They illuminate the minimum gold prices necessary to keep the mines running.
All-in sustaining costs are far superior than cash costs, and were introduced by the World Gold Council in June 2013. They add on to cash costs everything else that is necessary to maintain and replenish gold-mining operations at current output tempos. AISCs give a much-better understanding of what it really costs to run gold mines as ongoing concerns, and reveal gold miners’ true operating profitability.
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