Forward cost

  1) 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.

  2) The operating and capital costs still to be incurred in the production of uranium from in-place reserves. By using forward costing, estimates for reserves for ore deposits in differing geological settings and status of development can be aggregated and reported for selected cost categories. Included are costs for labor, materials, power and fuel, royalties, payroll taxes, insurance, and applicable general and administrative costs. Excluded from forward cost estimates are prior expenditures, if any, incurred for property acquisition, exploration, mine development, and mill construction, as well as income taxes, profit, and the cost of money. Forward costs are neither the full costs of production nor the market price at which the uranium, when produced, might be sold.

  U.S. Dept. of Energy, Energy Information Administration's Energy Glossary