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

To: John Dally who wrote (53658)	6/4/2000 6:28:00 PM
From: Enigma	Read Replies (2) \| Respond to of 116779

Cash cost includes maintenance - but equipment cost is capitalised and amortised over a period - so it is not included in cash costs. I don't know why you think the companies would fudge the figures unless you distrust all companies, in all industries and all financial statements? There should be more concern IMO about the financial statements of certain tech. stocks.

To: John Dally who wrote (53658)	6/4/2000 8:57:00 PM
From: goldsheet	Respond to of 116779

> How reliable are the "cash costs" published by the mining companies? I.e., how much are they able to fudge the figure? I think they are reliable. There are accounting standards that determine which items are cash and which are capital costs. There is always a little room for "creative accounting" but nothing than would seriously impact numbers, IMHO. > Also, do the "cash costs" include maintenance, repairs, and the cost of new equipment required to continue mining over a longer period of time? Maintenance and repairs are expenses, so they show up as cash costs. New equipment is capitalized and depreciated, so it shows up in total costs, not in cash costs.