IAMGOLD (IMG.to) (IAG) reported its Q4 tonight and once again, we get to marvel about the way in which All-In Sustaining Costs (AISC) is used by the mining industry:
- 4q18 average realized gold price: U$1,233/oz
- 4q18 AISC per ounce sold: U$1,123
- Number of ounces sold: 220,000
So that means they make a U$24.2m* profit on the quarter, right?
Wrong. Because when real accounting rules are applied, IMG’s gross profit ($17.1m) isn’t even up at that level. So just forget about adjusted net earnings of NEGATIVE $16.1m or real bottom line net earnings NEGATIVE $34.8m. What’s the point of having this supposed industry standard measurement when companies like this jokeshow of fakery just make shit up and massage their figures to Kingdom come? What’s the point of even labelling a cost metric “All-In” when it’s obviously nothing of the sort? Why do fools fall in love? And why is Steve Letwin still employed?
*220k X (1233-1123)