"For decades, we have disguised our true costs to look better to providers of capital by focusing solely on cash costs, rather than reporting all the costs that go into mining. This created the impression that, even at present depressed prices, the industry is making healthy profits, when it is, in fact, marginal."
-Nick Holland, Gold Fields chief executive, writing in Business Day (South Africa), August 15 2013
Investors and analysts increasingly want more transparent disclosure of total costs specifically related to sustaining and expanding operations.
This report compiles findings from an analysis of 72 company financial reports and numerous conversations PwC has held throughout the global mining industry. We review shortfalls in current disclosure practices, and highlight several ‘grey areas’ in current industry guidance, contrasted with the growing demand for increased disclosure to achieve “improved reporting”.