RE:RE:RE:valuation...A methodology suggestion, if you have the time: (1) Calculate AISC on a per-tonne basis with no byproduct credits, and (2) calculate Revenue on a per-tonne basis. This way byproducts are treated as revenue (where they belong) and do not distort analysis of costs.
One of the problems -- not the only one -- with treating byproduct revenue as a cost reduction is that a company can claim reduced costs (a great many do this) when it was an uncontrollable external factor. If you track AISC under the byproduct-as-negative-cost paradigm, rising byproduct prices can make it seem that (real) costs are improving when the opposite might be true.
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junior_miner wrote:
Finally, I hate how they market RP, Perkoa is much better mine if you look at it on co-product basis. The AISC of RP will deteriorate at the same pace as by product prices decline. It's a fallacy to believe it's particularly low cost mine. It does have lot of resources though.