Off-take agreement and licenses and infrastructure and capital and partnerships and dormant mines and labor and production.
For me the drastically reduced Opex and Capex is solid gold !
Good point about the Off-take though Maaze; the market will come to its senses eventually.
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Capex vs. Opex
Capex, or capital expenditure, is a business expense incurred to create future benefit (i.e., acquisition of assets that will have a useful life beyond the tax year). For example, a business might buy new assets, like buildings, machinery, or equipment, or it might upgrade existing facilities so their value as an asset increases.
On the other hand, those expenditures required for the day-to-day functioning of the business, like wages, utilities, maintenance, and repairs, fall under the category of Opex, or operational expenditure.
Opex is the money the business spends in order to turn inventory into throughput. Operating expenses also include depreciation of plants and machinery which are used in the production process.
Comparison chart
Capex 1 Opex 2 Definition Capital expenditures are expenditures creating future benefits. A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing asset with a useful life that extends beyond the tax year. OpEx (Operational expenditure) refers to expenses incurred in the course of ordinary business, such as sales, general and administrative expenses (and excluding cost of goods sold - or COGS, taxes, depreciation and interest). 3 Also known as Capital Expenditure, Capital Expense Operating Expense, Operating Expenditure, Revenue Expenditure 4 Accounting treatment Cannot be fully deducted in the period when they were incurred. Tangible assets are depreciated and intangible assets are amortized over time. Operating expenses are fully deducted in the accounting period during which they were incurred. 5 In throughput accounting Money spent on inventory falls under capex. The money spent turning inventory into throughput is opex. 6 In real estate Costs incurred for buying the income producing property. Costs associated with the operation and maintenance of an income producing property. 7 Examples Buying machinery and other equipment, acquiring intellectual property assets like patents. Wages, maintenance and repair of machinery, utilities, rent, SG&A expenses
SOURCE: http://www.diffen.com/difference/Capex_vs_Opex
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What do you think?
Kind Regards
DYOR !!!
