Title: Canadian Gold Mining Companies' Reporting of Sustaining and Non-Sustaining (Expansionary or Growth) Capital: Systems Thinking Approach
Author(s) : Anna Czegledi, Jason Macintosh
The objective of this study was to investigate the application of Systems Thinking(ST) in reporting of Canadian gold mining companies. The main focus was to investigate ST approach in reporting Sustaining and Non-Sustaining (Expansionary or Growth) capital, which could be a good predictor of future growth and success for mining companies and an effective metric for current and future investors. Currently, Sustaining and Non-sustaining capital are not reported on financial statements as it is non-GAAP reporting. However, several companies report it as part of Management Discussion&Analysis, Mining Tax, Statistics of Canada, Qualified Person, and Securities and Exchange Commission National Instruments reporting. We analyzed 40 Canadian gold mining companies' reporting and systematized their systems thinking approach related to Sustaining and Non-sustaining capital. We recommended additional reporting in the Investing Activities on the statement of cash flows with disaggregation of cash used in Sustaining and Non-sustaining capital for public mining companies.