Gold Doré Production — Transfer to Bullion Inventory
Recording the production of gold doré bars from the carbon-in-leach (CIL) or heap leach circuit.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Gold Doré Inventory | Asset (+) | 6,800,000.00 | - |
| Ore Stockpile / In-Process Inventory | Asset (-) | - | 2,400,000.00 |
| Processing Costs (Transferred) | Expense (-) | - | 4,400,000.00 |
💡 Accountant's Note
Gold miners produce doré bars (impure gold-silver alloy) at site and transport them to refineries for further purification. The doré inventory is valued at production cost — the accumulated mining and processing cost per ounce of gold (and silver) contained. Doré is a significant balance sheet item for gold miners between production and sale at the refinery.
Practitioner & Systems Framework
💻 ERP Architecture
Doré production is tracked in the production module by pour date and bar number. Each bar has an assay certificate showing the gold and silver content (in troy ounces). The cost per ounce is calculated by dividing total production costs (mining + processing + site overhead + amortisation) by the gold-equivalent ounces produced. The doré inventory balance represents bars produced but not yet sold or refined. Doré in transit to the refinery is 'bullion in transit' — maintained in inventory until title passes to the refinery or buyer. Security and insurance coverage are critical for doré in transit.
⚠️ Audit Flags
Auditors physically count or confirm doré bars at site — bars are typically numbered and weighed, with assay certificates confirming gold content. Confirm bars in transit with the logistics provider and insurer. Test the cost per ounce calculation against the period's production cost and ounces produced. Review the valuation of the silver by-product component in the doré — some miners credit silver by-product credits against the cost of gold production (reducing gold COGS). Confirm the doré is not subject to any forward sale that would require mark-to-market accounting.
📄 Required Documentation
Doré bar register (bar number, weight, assay certificate), period production report (ounces poured), cost per ounce calculation, bullion in transit insurance and logistics documentation, refinery assay certificate (confirming gold/silver content), silver by-product credit treatment, and doré sales contracts (for forward-sold inventory disclosure).
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