Introduction
If you’re new to the mining industry, you’ve likely encountered terms such as “AISC” and “Cost Curves” in news about gold and silver prices. These concepts are crucial for evaluating whether a mining company is profitable, sustainable, or a good investment. This article discusses both concepts, step by step, with a focus on operations in the United States and Canada, two stable, regulated jurisdictions with significant metals production.
What is AISC ?
AISC refers to All-In Sustaining Costs, which is a metric that shows the full cost of producing one ounce of gold or silver while keeping the mine running at its current production level. It was introduced in 2013 by the World Gold Council (WGC) in collaboration with major producers such as Barrick Gold, Newmont, and others to provide more transparency than older “cash cost” metrics. [1]
Prior to the use of AISC, companies often reported only direct “cash costs” (such as labour, fuel, explosives, and processing chemicals). This practice understated the true economics because it ignored ongoing investments needed to sustain operations. According to Tarrant Elkington, General Manager at Snowden Optiro, in his LinkedIn post, AISC includes the following types of costs, as listed in the table below. (The costs align closely with that of the World Gold Council framework.)
| Type of Cost | Cost details |
| Direct operating costs | Mining, processing, labour, energy, consumables, royalties, production taxes |
| Sustaining capital expenditures (capex) | Money spent on maintaining equipment, developing new areas within the existing mine, or replacing infrastructure to keep production steady |
| Exploration and study costs | On-site work to replace depleted reserves |
| Reclamation and remediation | Costs for environmental restoration |
| Corporate general and administrative (G&A) costs | Often allocated to operations |
Source: [2]
AISC is typically reported per ounce (i.e. US$/oz) and can be calculated on a co-product or by-product basis. If the market gold price is well above a company’s AISC, it generates strong margins and cash flow. If the gold price is below the company’s AISC, the operation may lose money over time.
AISC in Practice: Gold vs Silver and Regional Context
In gold mining, recent North American AISC figures have hovered around US$ 1,400-1700/oz., with variations by site. For example, in Q3 2024, the regional average for North America was approximately U.S$ 1508/oz., showing relatively modest year-over increases compared to other regions. This increase was a function of factors like operational efficiencies at some Canadian sites offset by challenges such as lower grades in Nevada operations. [4]
Major players such as Barrick Gold and Newmont (with significant U.S. and Canadian assets) report detailed AISC figures quarterly. Costs can rise due to inflation (labour, steel, diesel). Lower ore grades (more rock removed for the same metal), regulatory compliance, and higher royalties (as metal prices increase). [5]
Silver mining often uses similar AISC frameworks, though silver is frequently a by-product of other metals. Primary silver producers in Canada and the U.S., such as Helca Mining (the largest silver producer in both countries, report low or even negative cash costs after by-product credits from gold, lead, and zinc. Helca’s AISC positions it in the lower end of the cost curve for primary silver mines. [6]
Silver AISC tends to be lower per ounce than gold’s AISC but silver prices are also much lower and far more volatile. Global primary silver AISC has seen fluctuations, with North American operations benefitting from stable jurisdictions – but facing costs from underground mining and environmental standards. [7]
What Are Cost Curves?
A cost curve is a visual tool (often a chart) that ranks individual mines, companies, or regions from lowest to highest AISC on the x-axis, with cumulative production on the x-axis (or simply ranked order), and cost per ounce on the y-axis. It shows the industry’s cost structure at a glance. Low-cost producers (left side of curve) have high margins even at lower metal prices and thus are more resilient. High-cost producers (right side) require high prices to be profitable and may shut down first during downturns. Overall, the curve predicts supply responses: at high prices, higher cost mines restart or expand; at low prices, marginal mines close.
For gold, global curves from sources such as the World Gold Council or consultants show that production is profitable when prices are strong. North American mines sit in competitive positions due to technology, scale, and infrastructure (though regulatory costs can be higher than in some other regions). [2] However, in silver, primary producers such as Helca emphasize their position in the “best” (lower-cost) portion of the curve, which supports strong margins. [6]
Factors Influencing AISC and Cost Curves in the U.S. and Canada
There are a number of factors that affect both AISC and Cost Curves in the U.S. and Canada, as outlined in the table below:
| Factors | |
| Geology and Mining Methods | Open-pit vs underground can have different cost profiles |
| By-products | Critical for silver mines; credits from other metals improve economics |
| External pressures | Inflation, energy prices, labour shortages, permitting delays, Indigenous consultations (especially in Canada) affect costs |
| Sustaining investment | Mines in mature districts like Nevada or Canadian Shield require ongoing capex |
| Jurisdictional advantages | U.S. and Canada offer political stability, rule of law, and access to capital, but stricter environmental standards than some other countries |
Recent data shows U.S. and Canadian gold AISC rising year-over-year in some periods due to the above factors, yet margins can widen significantly with high gold prices. [8]
Conclusion
AISC and Cost Curves are important because they drive investment decisions, stock prices, M&A activity, and even government policy on mining. Low AISC mines generate cash for exploration or green technology. Understanding them assists in analyzing mine sustainability: high-cost mines may face closure risks while efficient ones support sustainable development. In summary, AISC provides a realistic view of production costs while Costs Curves reveal competitive positioning. In the U.S. and Canada, both concepts highlight resilient yet cost-conscious operations in a high-price environment for precious metals.
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Sources:
[1] Digitalcommons.mtech.edu, https://digitalcommons.mtech.edu/cgi/viewcontent.cgi?article=1007&context=mine_engr
and
gold.org, https://www.gold.org/about-gold/gold-supply/responsible-gold/all-in-costs
[2] LinkedIn.com, https://www.linkedin.com/pulse/fresh-take-all-in-sustaining-costs-aisc-tarrant-elkington-o9mcc
and birchgold.com, https://www.birchgold.com/blog/precious-metals/importance-aisc-gold-supply/
[3] helca.com, https://www.hecla.com/wp-content/uploads/Reconciliation-of-All-In-Sustaining-Costs-AISC-per-Ounce-Silver-and-Gold-PDF-1.pdf
[4] gold.org, https://www.gold.org/goldhub/gold-focus/2025/03/ever-upwards-aisc-distinct-regional-variations-are-emerging
and spglobal.com, https://www.spglobal.com/market-intelligence/en/news-insights/research/2025/10/gold-all-in-sustaining-costs-in-us-canada-up-yoy-margins-to-widen-further
[5] spglobal.com, https://www.spglobal.com/market-intelligence/en/news-insights/research/2025/10/gold-all-in-sustaining-costs-in-us-canada-up-yoy-margins-to-widen-further
[6] helca.com, https://www.hecla.com/wp-content/uploads/Hecla-Mining_March-Update_FINAL.pdf
[7] silverinstitue.org, https://silverinstitute.org/wp-content/uploads/2025/04/World_Silver_Survey-2025.pdf
[8] spglobal.com, https://www.spglobal.com/market-intelligence/en/news-insights/research/2025/10/gold-all-in-sustaining-costs-in-us-canada-up-yoy-margins-to-widen-further
Disclaimer:
This summary is based on publicly available information from various company and government sources. It is provided for educational and informational purposes only. Though it has been taken to ensure accuracy, we make no representations or warranties of the reliability of the information.
Forward-looking statements, projections and estimates are subject to risks as outlined in the original company disclosures. Readers should consult official texts for full context. Nothing in the articles constitute forecasting, investment or financial advice. Please seek guidance from a qualified professional before making any investment decisions.
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