Published 27th June 2013
The World Gold Council today publishes a Guidance Note on “all-in sustaining costs” and “all-in costs” metrics, which gold mining companies can use to report their costs as part of their overall reporting disclosure. The World Gold Council has worked closely with its member companies to develop these non-GAAP measures which are intended to provide further transparency into the costs associated with producing gold.
It is expected that these new metrics, the “all-in sustaining cost” and the “all-in cost” will be helpful to investors, governments, local communities and other stakeholders in understanding the economics of gold mining. The “all-in sustaining costs” is an extension of existing “cash cost” metrics and incorporate costs related to sustaining production. The “all-in costs” includes additional costs which reflect the varying costs of producing gold over the life-cycle of a mine. It is up to individual companies to determine how they report to the market and to decide whether their stakeholders will find these new metrics of value in understanding their businesses; it is expected that, since many companies report on a calendar year basis, they may choose to use these metrics from 1 January 2014.
Terry Heymann, Director Responsible Gold, World Gold Council said: “These new metrics have been developed to help provide greater clarity and improve investor understanding. All companies involved in
gold-mining, including those which are not Members of the World Gold Council, will be free to use these metrics. Individual companies have responsibility for their own reporting, but we expect that many will use these new metrics, providing further consistency for investors and other stakeholders.”
For further information please contact:
World Gold Council
T +44 7595 271820
Note to editors:
World Gold Council
The World Gold Council is the market development organisation for the gold industry. Working within the investment, jewellery and technology sectors, as well as engaging with governments and central banks, our purpose is to provide industry leadership, whilst stimulating and sustaining demand for gold.
We develop gold-backed solutions, services and markets, based on true market insight. As a result, we create structural shifts in demand for gold across key market sectors.
We provide insights into the international gold markets, helping people to better understand the wealth preservation qualities of gold and its role in meeting the social and environmental needs of society.
Based in the UK, with operations in India, the Far East, Europe and the US, the World Gold Council is an association whose members include the world’s leading and most forward thinking gold mining companies.
Guidance note on non-gaap metrics – all-in sustaining costs and all-in costs