All-In Sustaining Cost (AISC) — Non-GAAP Disclosure
Calculating and disclosing the World Gold Council AISC metric for a gold mining operation.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| AISC Components (Non-GAAP Memo Entry) | Memo | - | - |
| Total AISC per Ounce (Disclosure Only) | Memo | - | - |
💡 Accountant's Note
AISC (All-In Sustaining Cost) is a non-GAAP industry metric developed by the World Gold Council representing the full cost of maintaining a mine in production, excluding growth capex and corporate costs. AISC = mining costs + processing costs + G&A + royalties + sustaining capex + mine closure costs per ounce of gold produced. It is the primary cost benchmark used by investors and analysts to compare gold miner efficiency.
Practitioner & Systems Framework
💻 ERP Architecture
AISC is calculated from the ERP's cost data but presented as a non-GAAP supplementary metric. The reconciliation from reported GAAP cost of sales to AISC bridges: starting from GAAP COGS (which includes depreciation/amortisation), removing non-cash items (D&A), adding sustaining capex (cash capital expenditure), adding royalties (if not in COGS), adding corporate-level G&A attributable to the mine, and dividing by ounces sold (or produced, depending on disclosure policy). The World Gold Council's 2013 guidance and subsequent updates define the components. Each component is sourced from the ERP cost centres.
⚠️ Audit Flags
Auditors do not audit non-GAAP metrics but review them for consistency with GAAP figures and internal consistency. The primary risk is that AISC is used to misrepresent the mine's cost profile — overstating production, understating royalties, or excluding sustaining capex from the AISC calculation. Confirm the AISC-to-GAAP reconciliation is disclosed with equal or greater prominence than the non-GAAP metric itself. Test that the components are sourced consistently from the same cost data used in GAAP reporting.
📄 Required Documentation
AISC calculation workings (by component), GAAP-to-AISC reconciliation, World Gold Council AISC guidance compliance, production (ounces) used as the denominator, sustaining capex schedule (AISC component), royalty amount included in AISC, non-GAAP disclosure policy and prominence guidelines, and audit committee approval of AISC disclosure.
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