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Author: Admin | 2025-04-28
New operation, a major project at an existing operation or a non-operating/closed site. Items included or excluded from AISC or AIC FAQs:12. How should companies address special items or adjustments needed to normalise earnings in AISC and AIC?The WGC Guidance Note excludes certain costs from AISC and AIC, including items that a company adjusts for to normalise earnings. These adjustments include items such as impairment charges on non-current assets and one-time material severance charges. The WGC Guidance Note does not provide a specific list of items or adjustments that are considered appropriate or reasonable as it is not practical to define such a list given the potential range of events faced by individual companies. Companies should adequately disclose the reason for adjustments to AISC and AIC for special or non-recurring items. As discussed above, a numerical reconciliation should be provided between the US GAAP or IFRS financial statement line items and the costs included in the reported AISC and AIC metrics that clearly identifies any special items or unusual adjustments excluded from AISC and AIC.13. How should companies treat “by-product” and “co-product” sales from secondary metals in AISC and AIC?The WGC Guidance Note specifies that by-product and co-product credits are included in the calculation of AISC and AIC as a credit to operating costs. Companies generally treat both by- product (i.e. secondary metal sales treated as a reduction of cost of sales in the financial statements) and co-product (i.e. secondary metal sales reported as sales in the financial statements) credits as a reduction of AISC and AIC. This approach is consistent with the WGC Guidance Note. Regulatory requirements regarding how co-product revenues can be treated in non-GAAP metrics such as AISC and AIC can result in inconsistencies when comparing metrics between companies. Companies should clearly disclose how they treat both by-product and co- product credits in the calculation of their AISC and AIC metrics in order to make the user of the information aware of the potential differences between companies.If a company reports separate AISC and AIC metrics for gold and co-product metals, the company should provide a numerical reconciliation between the US GAAP or IFRS financial statement line items and the total costs included in the gold and co-product AISC and AIC metrics. A company that reports separate gold and co-product AISC and AIC metrics should also disclose the methodology used to allocate costs between gold and the co-product metal.14. How should companies treat net realizable value (“NRV”) write-downs of stockpile, leach pad or in-process inventories when reporting AISC and AIC?The WGC Guidance Note excludes changes in working capital from AISC and AIC, except for adjustments to inventory on a sales basis. Adjustments to stockpile, leach pad, and in-process
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