Operating Expenses

All mining operations feature a series of costs broadly grouped together as Operating Expenses, and abbreviated as Opex.

Generally, these are divided into on-site costs of producing the commodity and off-site costs of transportation and processing downstream.

For earlier stage companies, instead of downstream processing this would be replaced by test work by third party service providers.

A more detailed inventory of operating expenses include, labour, consumables, power, water, exploration and evaluation costs, stripping and mine development costs, administrative costs