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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: At_The_Ask who wrote (149156)2/5/2002 10:32:09 PM
From: pater tenebrarum  Read Replies (1) of 436258
 
cash cost and TOTAL cost. cash cost gives you an idea of the free cash flows the biz throws off. total cost includes depreciation of mining assets, provisions for rehabilitation,etc. well, 'total' actually says it already. it's the true all-in cost of producing an oz.
it makes sense to follow both, as cash cost can give you a rough idea of survival probabilities when gold prices are low. note that some SA mines use somewhat different accounting methodologies for reporting purposes there. but that will have to wait for some other time...i'm about to call it a day. it's anyway not a material issue...they usually point out in their reports what differences to SEC mandated procedures there are and what they mean in practice. there are also some differences in the reporting of reserves/resources.
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