Publicly traded gold companies offer investors a quick non-GAAP formula to give investors a glimpse at their costs per ounce called "cash costs." This measure may vary slightly from company to company (it is non-GAAP after all) but it is generally their "mining costs" (cost to operate their mines, process the ore, pay miners, etc.) divided by the amount of gold equivalent ounces produced. But unfortunately this measure is misleading, and selectively reports some costs and ignores other, which ends up not giving investors a true picture into the cost it takes to produce an ounce of gold.
We are not the only ones to criticize the industry over this, and many investors and funds are also calling for improvements to these measures. Some miners have begun to offer a new measure of costs called the "all-in sustaining cash costs," which includes additional costs used to mine the commodity.
Original URL: https://seekingalpha.com/article/1346991-the-true-all-in-cost-to-mine-gold-complete-2012-figures
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