World Gold Council releases new gold-mining cost metrics – by Martin Creamer (MiningWeekly.com – June 27, 2013)posted in Canadian/International Media Resource Articles, Gold and Silver |
JOHANNESBURG (miningweekly.com) – The World Gold Council (WGC) on Thursday released two new methods of calculating and reporting gold-mining costs to improve clarity and provide greater investor understanding of the complete costs associated with the mining of gold.
The first method is an extension of the existing “cash cost” metrics and incorporates costs that are related to sustaining production, which the council refers to as the “all-in sustaining cost”.
The second method takes into account additional costs and reflects the varying costs of producing gold over the life cycle of a mine, which the WGC dubs the “all-in cost”.
WGC director Terry Heymann told Mining Weekly Online from London that the new metrics had been developed to help provide greater clarity and consistency to improve investor understanding.
WGC has worked closely with its member companies and beyond to develop the non-Generally Accepted Accounting Principles (GAAP) measures and expects them to be helpful to investors, governments, local communities and other stakeholders.
Companies, including non-WGC members, are free to use the metrics from January 1.
“Individual companies have responsibility for their own reporting, but we expect that many will use these new metrics, which provide further consistency for investors and other stakeholders,” Heymann told Mining Weekly Online.
The metrics are not formally regulated accounting measures and are intended to complement the existing accounts that companies already provide.
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