- WHAT IS AISC OF A GOLD MINING?
This is metric that has been introduced by the World Gold Council in 2013. AISC is a similar measure to what you might find in anything from manufacturing to retail, only in other sectors acronyms such as CODB (cost of doing business) and COGS (cost of goods sold) are applied.
The average AISC for gold mines in Australia and New Zealand in the September quarter was A$1335 an ounce, up from $1189/oz for the same period of 2018. The lower the AISC is, the more positive this metric is for the business.
So before you buying a stock check out the AISC and compare to its peers. Glencore and Evolution Mining’s Ernest Henry copper-gold mine in Queensland was the lowest-cost producer AISC in 2019.
AISC is available on company’s FY Report.
2. WHAT IS THE GOLD PRICE TREND?
Before investing in a gold producer, it is critical to undertand the current Gold price direction and how the upcoming macro economics could affect the long term or short term this precious metal’s price. Gold is known as safe heavens, when market crashes, gold tends to outperform, when the markets are up gold tends to go down. In additon to that, low Interest rates environment and quantitative easing (QE) policies are also beneficial to Gold price appreciation.
3. ARE YOU BUYING A GOLD PRODUCER OR A GOLD EXPLORER?
If you like investing in small caps stocks, it is very important knowing the nature of the company you are investing in, is it a gold producer or it is a gold explorer? We found over the years investing in gold mining companies that gold producers the share price would have direct exposure to gold bullion price variations whereas the gold explorer’s share price is much more susceptive to drilling reports and exploration results. The more extensive and promissing a exploration pipeline is, the more often the company has to report its investors about its status and often these annoucements help to move the company’s share prices.