Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: lorne who wrote (44792)	11/9/1999 8:30:00 PM
From: Giraffe	Respond to of 116960

GOLD: Mines urged to improve accounts By Nikki Tait in Chicago The Gold Institute, the trade association for the North American gold mining industry, is urging producers to be clearer about the accounting treatment used at mines where more than one product is produced, so that analysts have a better picture of the "true" cash costs. Depending on whether miners use a "by-product" or "co-product" accounting system, the cash costs of production can vary. Cash costs are a closely watched measure of a mine's efficiency and desirability. Under a by-product system, production costs at a mine are calculated and then the value of the smaller metals produced there are deducted. The resultant number is divided by the number of ounces of gold produced at the mine, to give the cash cost per ounce. Under a co-product system, production costs and by-product credits are allocated on a proportional basis. The Gold Institute said the recommendation came in the wake of a survey of member mining groups that account for about 70 per cent of all North American mined gold, and of analysts. The institute first adopted a production cost standard three years ago to make comparisons between mining groups easier. The standard is voluntary and requires disclosure of the accounting practices used. The institute also suggests more details be provided when "gold equivalent" reporting is used (when a co-product is translated into "equivalent" gold production at a ratio of market prices for the two metals). It also planned to examine "staged pit" versus deferred "stripping" accounting. ft.com