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Re: supermegadope post# 120709

Tuesday, 08/14/2012 11:12:42 AM

Tuesday, August 14, 2012 11:12:42 AM

Post# of 165875
That would be part of the overheads. The entire cost to build the mine would be capitalized and then expensed little by little over the mine life like say 30 years. This is what is called depreciation in accounting terms. So for a simple example if the mine cost $300M, they would include $10M in depreciation costs on the income statement each year for 30 years. As others have suggested, your particular item, interest expense, may be minimal if our partner has deep enough pockets to self finance.

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