The World Gold Council (WGC) has published an update to its June 2013 guidance note on all-in sustaining costs (AISC) and all-in costs (AIC).
“Since its launch in 2013, we have monitored the use and application of the guidance note to ensure that it meets its objective of providing transparency into the costs associated with producing gold, by setting out a consistent methodology.
“In light of new accounting standards and to support further consistency of application, we have included incremental enhancements in the guidance note, as well as provided a set of frequently asked questions. We believe this will be of benefit to investors and other stakeholders,” WGC CFO Terry Heymann commented in a release published on Wednesday.
The use of the AISC and AIC metrics has been widely adopted by gold mining companies as part of their overall reporting disclosure, the WGC said, adding that it had worked closely with its member companies to develop these non-generally accepted accounting principles (non-GAAP), measures which are intended to provide further transparency into the costs associated with producing gold.
“These non-GAAP metrics have helped provide greater clarity and improve investor understanding. All companies involved in gold mining are encouraged to use these metrics,” the council stated.
Individual companies are responsible for their own reporting. It is expected that companies may choose to use the updated guidance note from January 1, 2019 or at the beginning of their financial year, if later.