###Capital Expenses

From inception to production a mining company will incur significant costs. Also abbreviated as Capex this figure includes development, construction, inventories, working capital, inflation cost, sustaining capital, and closure costs.

The first and most important cost is the actual construction of a mine. This is not done all at once and moving beyond the exploration phase and into the development phase presents a gradual purchasing of equipment, engineering design costs, and meeting the requirements of various permits.

Over longer period of time when a mine goes into production the capital expenses become more important as the also include the ongoing cost of replacing equipment.