The economic question.
WHAT TO ESTABLISH
Revenue per tonne, at realistic prices Cost per tonne, fully loaded The difference, across the life of the deposit
WHAT REVENUE DEPENDS ON
Grade and recovery Product specification and whether it meets buyer requirements Price, which moves Whether a buyer exists
WHY BUYER EXISTENCE MATTERS
Minerals with no accessible buyer have no value regardless of grade.
WHAT TO ESTABLISH BEFORE ANY INVESTMENT
Who buys this material, at what specification, at what price, and where.
WHAT COSTS TO INCLUDE
Stripping and waste removal Extraction Haulage within the site Processing Transport to buyer Equipment and its maintenance Fuel and power Labour Royalties and fees Community and environmental obligations Rehabilitation
WHAT PEOPLE OMIT
Waste removal, which frequently exceeds the ore handled Rehabilitation Community obligations Downtime
WHY STRIPPING RATIO MATTERS
Moving waste to reach ore is a large cost and it is decisive in many projects.
WHAT TO CALCULATE
Tonnes of waste per tonne of product.
WHAT TO ESTABLISH
Break-even price.
WHY
It tells you whether the project survives a price fall.
WHAT TO TEST
Viability at lower prices and lower grades.
WHY
Both assumptions are optimistic in most assessments.
WHAT TO AVOID
Proceeding on the assumption that prices will rise.
WHAT TO ENGAGE
Competent technical and financial assessment before committing capital.
