Short answer
All-in sustaining cost (AISC) is a non-IFRS measure that captures the per-ounce cost a gold producer needs to spend to keep an existing mine running at current production. It includes mine-site operating costs, royalties, sustaining capital, sustaining exploration, and corporate general and administrative expenses, divided by ounces of gold sold. Comparing AISC to the realised gold price gives the operating margin per ounce.
Why AISC was invented
Before 2013, gold mining companies reported "cash costs" — direct mine-site operating costs per ounce. The number flattered the industry because it excluded everything needed to keep producing: sustaining capital, royalties, corporate overhead, reclamation.
The World Gold Council standardised AISC in 2013 so investors could compare producers on the all-in price they actually need to receive for each ounce. AISC is now the most-watched per-ounce metric in the gold industry.
What's included in AISC
Total cash costs (mining, processing, refining, royalties and production taxes), plus sustaining capital expenditure, sustaining exploration and study costs, reclamation and remediation accretion, and corporate G&A.
What is excluded: growth capital, project-stage exploration, financing costs, taxes on income, and one-off items. Two producers reporting under the World Gold Council guidelines can be compared directly.
How to read AISC as an investor
AISC is the breakeven gold price below which a mine erodes cash. The wider the gap between realised gold price and AISC, the higher the per-ounce margin available for dividends, growth capital, exploration, or debt repayment.
Watch AISC trend over time — a rising AISC at a mature mine usually means falling grade, deeper mining, or rising input costs. Compare AISC at company level against ounces produced to gauge operating leverage.
Majestic Gold's AISC
Majestic Gold Corp. (TSXV: MJS) reported AISC of US$1,584 per ounce in fiscal year 2025, against total cash costs of US$1,195 per ounce. Production for the year was 29,804 ounces of gold from the Songjiagou Gold Mine in Shandong Province, China.
AISC and total cash costs are non-IFRS financial measures. The full reconciliation is published in Majestic Gold's annual MD&A on SEDAR+.
Related questions
Is AISC the same as cash cost?
No. Total cash costs cover mine-site operating costs, royalties, and production taxes only. AISC adds sustaining capital, sustaining exploration, reclamation accretion, and corporate G&A — so AISC is always higher than cash costs.
What is a good AISC for a gold mine?
There is no universal threshold; AISC varies by orebody, grade, and jurisdiction. A useful test is the margin between AISC and the realised gold price: the wider the margin, the more cash the mine throws off per ounce.
Does AISC include exploration?
AISC includes sustaining exploration — exploration to extend the mine life of an existing operation. It excludes growth or project-stage exploration, which is reported separately as all-in cost (AIC) or treated as growth capital.