Cash costs, in mining, are the costs of production, at site level, per unit of output. Cash costs include operational cash costs at site level. This: includes transport, refining and administration costs and royalties. excludes non-cash costs such as depreciation and amortisation.
How do you calculate cash cost?
Cash Cost per ounce is a measure of the average cost of producing an ounce of gold, calculated by dividing the operating costs in a period by the total gold production over the same period.
What is C1 cash cost?
C1 cash costs C1 cash costs is a metric representing the cash cost per unit of extracting and processing the Company’s principal metal product, copper, to a condition in which it may be delivered to customers net of gold and silver credits from concentrates sold.
What is included in cash cost approach?
(b) Cash Cost Approach:
Under this approach, the amount of working capital is estimated on the basis of only cash costs incurred. Thus, depreciation being non-cash is excluded while calculating the cost of work-in-process, cost of goods produced and cost of goods sold.
What is C1 and C2 cost?
• Net Direct Cash Cost (C1) represents the cash cost incurred at each. processing stage, from mining through to recoverable metal delivered to market, less net by-product credits (if any). The M1 margin is defined as metal price received minus C1. • Production Cost (C2) is the sum of net direct cash costs (C1) and.
What is cash cost and book cost?
A cash cost is a cash transaction, or cash flow. If a company purchases an asset, it realizes a cash cost. A book cost is not a cash flow, but it is an accounting entry that represents some change in value. When a company records a depreciation charge of $4 million in a tax year, no money changes hands.
What is non cash cost?
A non-cash charge is a write-down or accounting expense that does not involve a cash payment. Depreciation, amortization, depletion, stock-based compensation, and asset impairments are common non-cash charges that reduce earnings but not cash flows.
What is AISC mining?
All-in sustaining costs and all-in costs
The use of the “all-in sustaining costs” and “all-in costs” metrics has been widely adopted by gold mining companies as part of their overall reporting disclosure. These non-GAAP metrics have helped provide greater clarity and improve investor understanding.
What is a mining cost curve?
These curves are based on the average variable costs of production of different mines, and are constructed by ranking production at each mine according to its costs. Average variable costs of production of mines include wages, processing costs and, where available, the cost of transportation.
What is C1 in accounting?
The Cash Receipt Electronic Deposit (C1) document records all monies collected and deposited directly to the bank electronically.
What is an example of a cash expense?
Cash expenses are those that require an outflow of cash from the business in order for them to be incurred. Examples of cash expenses include salaries, interest on loans, and taxes.
What are costing methods?
Definition; Costing method is the approach or style or tactic adopted by an organization to collect cost data in a more appropriate manner. There are several methodologies utilized by different organizations, which is determined by the nature of products being manufactured.
What is the total cost method?
The total cost method normally consists of subtracting bid price from the actual cost of performance and adding profit to the resulting amount.
What’s a book cost?
Book Cost, sometimes referred to as Book Value, is the total cost of purchasing a security. It includes any transaction charges related to the position (such as commissions) and is adjusted for reinvested distributions, return of capital, corporate actions and any subsequent purchases.
Which one is a book cost?
Definition: The Book Cost refers to those expenses which do not involve actual cash payments, but rather the provisions are made in the books of accounts to include them in the profit and loss accounts and avail the tax advantages.
What is cash cost and example?
As a successful business pays back debts over time, the payments count as cash costs. Businesses can deduct these costs from income on a cash basis. A simple example is a sole proprietor who pays the credit card bill every month. When the proprietor pays the bill each month, the business can record the cash costs.
How do you calculate cash balance in accounting?
Cash balance = beginning cash balance + cash inflows – cash outflows.
What is an example of a cash expense?
Cash expenses are those that require an outflow of cash from the business in order for them to be incurred. Examples of cash expenses include salaries, interest on loans, and taxes.
How do you calculate opening cash?
Opening Balance (what you have in bank at the start) plus Total Income (what money comes in) minus Total Expenses (what money goes out) equals Closing Balance (what money you have left). The Opening Balance is the amount of cash at the beginning of the month (1st day of month).
How is cash profit calculated?
Add your net income and depreciation, then subtract your capital expenditure and change in working capital. Free Cash Flow = Net income + Depreciation/Amortization – Change in Working Capital – Capital Expenditure. Net Income is the company’s profit or loss after all its expenses have been deducted.
What is cash balance?
A cash balance is the amount of money a company currently has available. This money is kept on hand to offset any unplanned cash outflows. If not for this safety buffer, businesses can find themselves unable to pay their bills. Cash balance is typically used to pay off debt or is returned to investors as a dividend.