All-in Sustaining Costs (AISC)
Also: AISC, All-in costs, Total production costs
All-in Sustaining Costs (AISC) are a standardised gold-mining metric that captures the full cost of keeping a mine's current output running over the long term.
All-in Sustaining Costs (AISC) were introduced in 2013 by the World Gold Council to bring order to the previously inconsistent way gold miners reported their costs. Unlike the older concept of "cash costs", which captured only direct operating expenses, AISC aim to give a realistic picture of the true economic burden per troy ounce produced.
What counts toward AISC?
Starting from cash costs, AISC add further cost blocks that are essential to running a mine sustainably:
- Cash costs — direct mining, processing, and refining expenses
- Sustaining capital expenditure (capex) — spending to maintain existing production capacity (e.g. replacement equipment, infrastructure)
- Exploration and development spending at existing mines
- General and administrative costs (G&A) at the corporate level
- Royalties and levies, where not already included in cash costs
Growth investment in new mining areas or entirely new mines is explicitly not part of AISC — for that, the broader metric "All-in Costs (AIC)" exists.
Formula (simplified)
AISC (USD/oz) = Cash costs + sustaining capex + exploration (sustaining)
+ G&A + royalties (where not yet included)
/ ounces produced
Why do AISC matter to investors?
The current gold price compared with a mine's AISC reveals its operating margin: when the spot price sits well above AISC, the mine is profitable and can repay debt or pay dividends. Should the gold price fall below AISC, production cuts or mine consolidation loom — which over the medium term affects the global balance of supply and demand in precious-metal markets and acts as indirect price support.
The historical gold prices show that periods of heavily compressed margins — such as 2013-2015, when gold fell from around USD 1,700 to below USD 1,100 and reached or exceeded the AISC of many high-cost producers — regularly led to production cutbacks and subsequent price recoveries.
Limits of the metric
AISC are not a GAAP measure and are calculated slightly differently by each company. Investors should check the composition in the annual report. AISC also exclude growth capex, acquisition costs, and financing costs — a complete company analysis needs these added in. (This is not investment advice.)
In brief
AISC is the single most important profitability metric for gold mines: it shows the spot price above which a mine can produce sustainably — and therefore how far the market price sits from the structural cost floor.