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The Guidance Note on Non-GAAP Metrics – all-in sustaining costs and all-in costs was first issued in 2013. In light of new accounting standards and to support further consistency of application, the The World Gold Council has published an updated Guidance Note, …

Montana Tech Library Digital Commons @ Montana Tech

Apr 06, 2020· Sustaining Capital, Mining $ 142 : Sustaining Capital, Infrastructure $ 37 : Closure $ 35 : Salvage $ (13) Contingency $ 30 : Total Sustaining Capital $ 231 : …

Sustaining Capital Management | Case Study | Audere Partners

LOM Mine-Site All-in Sustaining Cost ("MAISC") of $2.10 per oz silver, net of the gold credit; Initial Capital Expenditure ("Capex") of $99 million; LOM Sustaining Capital Expenditures of $60 million; Payback Period ("Payback") of 2.7 years; Pre-tax cumulative undiscounted free cash flow of $315 million

Mining capital projects Are you ready for the next CapEx ...

Maintenance Capex (sustaining) - measures how much spend needs to be made to ensure existing Capex functions properly (think annual machine maintenance, IT upgrades of existing systems, etc.) Growth Capex - Capex required to grow production, revenues; example of this is new machinery next to existing, a new plant to double production, etc.

Sustaining Capital

Sustaining capital. Sustaining capital refers to the ongoing (yearly) capital investment that a refinery must make to continue to operate. This includes maintenance capital and investment required to adapt to regulatory changes. It does not include investment for expansion or margin improvement (growth capital).

Americas Mining & Metals Forum September 2013

All-in sustaining cost is a metric used by mining companies to reflect the cost of gold mining in a consistent format useful to both investors and mining professionals. Cost reporting focused on the direct cost of mining and processing ore was summarized in the non-GAAP cash cost developed by the Gold Institute in 1996. In 2013, a

sustaining capital mining

Since establishing formal guidelines in 2013, the World Gold Council's (WGC) All-In Sustaining Cost (AISC) has been an important metric for comparing costs per payable metal unit sold for gold mining companies. However, it should not be a surprise that there are many interpretations of AISC, even with explicit WGC guidelines.

Today's Gold prices are not much above production costs ...

Sustaining capital is an obvious target as it represents a significant portion of expenditure, but also tends to be less rigorously critiqued compared with operating costs. When money is tight, the easy answer is often to stop these projects; however, this affects future operations and often reduces productivity when demand and production ramp ...

The Concept Of AISC In The Gold Mining Industry: Strength ...

Rio approves Pilbara sustaining capital RIO Tinto and its Robe River joint venture partners, Mitsui and Nippon Steel & Sumitomo Metal, have approved an investment of US$1.55 billion to sustain production at Robe Valley and West Angelas.

BRIEF

Sustaining capital expenditure in the mining, minerals, and metals (MMM) industries is being subjected to ever more scrutiny following a long period of low commodity prices. With capital activity increasing within the sector in recent years, sustaining capital is important to ensure competitiveness and free up cash flow for future investments.

All In Sustaining Cost Reporting – Gold Industry's New ...

Fluor has successfully implemented a broad variety of execution models for sustaining capital projects. We have a variety of established execution models, ranging from fully self-supporting site teams to home office execution supported by a small team onsite for data collection and client collaboration.

Alamos Gold Announces Phase III Expansion of Island Gold ...

GUIDANCE NOTE ON NONGAAP METRICS ALL--IN SUSTAINING – COSTS AND ALL-IN COSTS US $ / gold ounces sold On-Site Mining Costs (on a sales basis) Income Statement (a) On-Site General & Administrative costs Income Statement (b) Royalties & Production Taxes Income Statement (c) Realised Gains/Losses on Hedges due to operating costs

How do I differentiate between growth capex versus ...

All-in sustaining cost is a non-GAAP measure. The Company calculates all-in sustaining costs as the sum of total cash costs (net of byproduct credits), sustaining capital expense, corporate, general and administrative expense (net of stock option expense) and exploration expense. The

Mining Investment Beyond The Boom

"We delivered benefits of $500M in maintenance and sustainable capital spending reductions as well as improved operations performance across 9 diverse global mine sites" GM RELATED CASE STUDIES

Sustaining capital | McKinsey Energy Insights

Sustaining capital, the capital investment necessary for a business to maintain operations, includes replacing and refurbishing those assets that depreciate year after year. At Partners in Performance, we have been helping clients improve their sustaining capital programs for over 20 years. In that time, we've cut hundreds of millions in capital spending, while generating billions of NPV ...

Why do sustaining capital portfolios under

Capital Projects Insights is a series of papers bringing together the latest thinking from members of our global team on optimizing performance and value across the lifecycle of capital projects. Note: In this report, capital expenditure (CapEx) comprises the cash outflow on purchases of property, plant and equipment, and intangible assets.

Marathon Gold Announces Positive Pre

The late-stage project in Chile will need more than $7.4 billion with an estimated $3.1 billion to build the mine and roughly $4.4 billion for sustaining capital over a life of 48-years.

GUIDANCE NOTE ON NONGAAP METRICS ALL

A: The simple answer is: with great difficulty. I began giving business valuation opinions in 1969, about 45 years ago, and I can tell you that up until about 25 years ago, I can't remember dealing with a business owner who, when I talked to them about sustaining capital reinvestment and growth capital, knew what I was talking about.

Industry Norms for Sustaining Capital Allocation to Sites ...

Types of Mining Sector Costs Costs in the mining industry and broadly similar to every other industry, but they are substantially higher, and the first revenues to offset these costs only comes either when a project enters production (which is rare), or if there is an asset sale. ... Sustaining Capital …

Sustaining capital – SNC

Global data on the gold mining sector gives us some clues. The chart below shows the global cost curve for gold mining — in terms of all-in costs. That includes operating costs, sustaining capital at mines, and development costs to bring new ounces of production online.

Mining, Minerals, & Metals: Sustaining Capital Allocation ...

Oct 13, 2014· Sustaining Capital Study Included Diverse Mining/Minerals/Metals Sites Given the diversity of sites in the study, it would be nonsensical to compare absolute capital spend (e.g., to say that Site A spends $50 million and Site B spends $30 million), without taking into account differences in production throughput, complexity, location, age, and ...

Break

Feb 16, 2017· Sustaining capital reinvestment is the periodic addition of capital to the business that is required to maintain operations at existing levels. The investment amount is net of the present value of income tax deductions available (tax sheild), and is deducted during computation of annual cash flows while determining a firm's valuation.

Rio approves Pilbara sustaining capital

Manager Mining Technology & HME - Sustaining Capital Perth, Australia 500+ connections. Join to Connect. Rio Tinto. APMG. Report this profile; About. In IT Project Management space for last 21 years across Middles East and Australia. I posses extensive experience in handling large-scope projects independently, defining and managing risk ...

Mining News

Sustaining capital is expenditure that maintains existing capabilities as opposed to 'project capital' that is used to buy capability (or capacity). For maintaining existing capital items, there is no conceptual difference between replacing an oil filter every 50 hours (an operating cost) and replacing a truck engine every 16 000 hours (a ...

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The mining costs are estimated in a mining company's feasibility study which, when available, can be found on the company's website (often hidden between the news releases). In the feasibility study you should look for the expected CAPital EXpenses (CAPEX) and OPerational EXpenses (OPEX) to inform yourself about the mining costs of the ...

Capital & Operating Costs

BRIEF-Endeavour Mining Corp Non-Sustaining Capital For 2020 Is E:BRIEF-Endeavour Mining Corp Non-Sustaining Capital For 2020 Is Expected To Be Approximately $10 Million For Waste Extraction