TeachMeFinance.com - explain Forward cost (1)
Forward cost (1) The term 'Forward cost (1)' as it applies to the area of energy can be defined as ' Forward costs are those operating and capital costs yet to be incurred at the time an estimate of reserves is made. Profits and 'sunk' costs, such as past expenditures for property acquisition, exploration, and mine development, are not included. Therefore, the various forward-cost categories are independent of the market price at which uranium produced from the reserves would be sold'.
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