AISC (All-In Sustaining Costs) is the single most important cost metric for mining investors. It tells you how much a company spends per unit of production to keep its mines running — and therefore how profitable it really is at current commodity prices.
AISC was standardized by the World Gold Council in 2013 to give investors a more transparent view of mining profitability. Unlike simple cash costs, AISC captures the full picture:
AISC only covers costs to sustain current operations. AIC (All-In Cost) adds growth capex — new mine construction, expansions, and major development projects. For dividend investors, AISC is the more relevant metric because it shows how much free cash flow is available after maintaining production. AIC matters more when evaluating growth-stage miners building new projects.
AISC varies significantly by commodity and producer quality:
The AISC margin (commodity price minus AISC) directly drives free cash flow, which funds dividends and buybacks. A gold miner with AISC of $1,300/oz and a gold price of $2,800/oz has a $1,500/oz margin — generating enormous cash flow. When AISC rises faster than commodity prices, margins compress and dividends are at risk.
Always compare AISC across companies in the same commodity space. A low-AISC producer is structurally more resilient in downturns and can maintain dividends when higher-cost competitors are forced to cut.
← Back to Glossary