Guides
What is all-in sustaining cost (AISC)?
AISC is a non-standardised cost measure that tries to show what it takes to keep a mine running at its current scale. Understanding what it contains stops you from counting the same spending twice.
What AISC usually includes
Companies typically start with cash operating cost, then add royalties, sustaining capital expenditure, sustaining exploration, corporate overhead, reclamation accretion and similar items, all divided by ounces sold. Definitions vary between companies and by-product treatment differs, so read each issuer footnote before comparing two numbers.
AISC versus cash cost
Cash cost is narrower and leaves out most sustaining capital. It makes a mine look cheaper. AISC is a fuller picture of the cost of staying in business, but it still excludes growth capital and usually income tax.
How to avoid double counting
Suppose you enter an AISC of 1,400 dollars per ounce and then also deduct sustaining capex in the operations section. The sustaining spending has been charged twice and cash flow is understated. In OreScore, choose the cost basis that matches your figure. If it is AISC, leave sustaining capex out of the separate field. If it is cash cost, include sustaining capital yourself.
This is an example for explanation only and not a current cost for any company. Enter figures from filings you have checked.
Try it with your own figures
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Open the mining stock calculatorFrequently asked questions
- Is AISC an accounting standard?
- No. It is a non-GAAP measure, and issuer definitions vary.
- Does AISC include growth capital?
- Normally not. Growth or expansion capital is reported separately.