**AISC** stands for **All-In Sustaining Costs**, and it’s a comprehensive metric used in the mining industry to assess the total cost of producing an ounce of gold (or another mineral). ### What AISC Includes: AISC goes beyond just the cash cost (which is mainly mining and processing) and incorporates a wider set of costs to reflect the _true economic cost_ of mining. It includes: 1. **Cash Operating Costs**: Direct mining costs (labor, energy, consumables). 2. **Sustaining Capital Expenditures**: Cost to maintain current production levels (e.g., equipment replacement, mine development). 3. **Corporate G&A**: Overhead and admin expenses. 4. **Reclamation & Closure Costs**: Environmental remediation, site closure provisions. 5. **Exploration (near-mine)**: Exploration that is required to keep the current operation going. > **Formula (simplified):** > AISC = Cash Costs + Sustaining Capex + G&A + Reclamation Costs ### Why It Matters - **Standardization**: Introduced by the World Gold Council to standardize reporting and allow apples-to-apples comparison between miners. - **Investment Utility**: It’s key for assessing margins. For instance: - If gold is $2,400/oz and a miner’s AISC is $1,100/oz → they’re earning ~$1,300/oz in margin. - If gold drops to $1,800, high-AISC producers may barely break even or go negative. **AISC acts like a cost floor**, which determines how badly a miner could get squeezed if prices fall or how much margin they’ll capture if prices rise. Lower AISC = downside buffer; higher AISC = more torque.