AISC: Why it's the best Mining Metric, and why it still Sucks!

Mining companies have a lot of moving parts. Extracting and processing minerals isn’t simple—it involves everything from drilling and blasting to transportation, refining, and site administration.

Each stage has its own set of costs, which can swing up or down depending on things like energy prices, regulations, and labor conditions. These variables mean mining costs are always in flux. Understanding these costs is the key to knowing if a mining project will ever be profitable.

Or if you're better placed to take that Christmas bonus to the casino and throw it all on lucky red 27.

Let's break down the key metrics: C1 costs and AISC, where they appear on financial statements, and why they matter to you as an investor. We'll explore how these metrics impact a mine's profitability and ultimately help you decide if it's worth your money.

C1 Costs: The Direct Costs of Production

C1 costs are the basic measure of what it takes to get the metal out of the ground and ready for sale.

They include mining, milling, concentrating, on-site admin, and refining. Basically, the "bare minimum" costs needed to produce the metal.