A few thoughts on recent discussions Since reading the post from MVargas on the stockhouse board, I have dug into Victoria’s feasibility study to try and gain an even better understanding of recovery. The FS says 90% of recoverable gold will be recovered in the first 90 days, with the final 10% taking up to 200 days. So MVargas explanation spread out over finer time periods, is probably pretty close. I posed the question to Cruxinvester, who is interviewing Victoria this week, hopefully we get more information.
From a bear perspective, the FS lists the ore stockpile peaking at 2.5 mil tones in Q1, my interpretation is we basically have 1mil tonnes now, so a little shy. On top of this the strip ratio was way off the FS as well. Hopefully Cruxinvester digs into these issues as well.
As for AISC (whatever), the term itself is none IFRS parameter, period.
This applies to all mining companies.
If you go to Victoria’s MD and A you will find the exact meaning (what it includes and what it does not), for fun, I compared it to Kirkland Lakes explanation in its MD and A, the wording is basically identical.
Here is Victoria’s...
All-in sustaining costs All-in sustaining costs (“AISC”) include mine site operating costs, sustaining capital, mine site exploration expenditures, reclamation and remediation costs (including accretion and amortization), lease payments related to the mine operations and corporate general and administration expenses. The Company believes that this measure represents the total costs of producing gold from current operations and provides Victoria and other stakeholders with additional information that illustrates the Company’s operational performance and ability to generate cash flow. This cost measure seeks to reflect the full cost of gold production from current operations on a per-ounce of gold sold basis. Depreciation and depletion, new project and growth capital, growth exploration, financing costs including interest expense, income tax and Yukon mining tax are not included in AISC.
And here is KL....
AISC and AISC per ounce are Non-IFRS measures. These measures are intended to assist readers in evaluating the total costs of producing gold from current operations. While there is no standardized meaning across the industry for this measure, the Company’s definition conforms to the definition of AISC as set out by the World Gold Council in its guidance note dated June 27, 2013. The Company defines AISC as the sum of operating costs (as defined and calculated above), royalty expenses, sustaining capital, corporate expenses and reclamation cost accretion related to current operations. Corporate expenses include general and administrative expenses, net of transaction related costs, severance expenses for management changes and interest income. AISC excludes growth capital expenditures, growth exploration expenditures, reclamation cost accretion not related to current operations, interest expense, debt repayment and taxes.
Hope this helps
All the Best