Help me understand mining banking jargon
Hi all,
I am trying to familiarize myself with all the jargon associated with natural resources/mining team within an IB. I have been reading pre feasibility studies to try and strengthen my understanding, but I am unsure of a few things and don't really have anyone to ask.
Can you please confirm my understanding of the points in the table are correct?
Target Parameters
1 Life of Mine from production start 9.6 (Yrs)
2 Ore Reserve – Base Case 21.4Mt
3 Waste : Ore ratio 4.76
4 Copper Grade 1.02%
5 Copper cut-off grade (excluding silver credit) 0.34%
6 Silver Grade 10.3g/t
7 Processing Life 8.8 (Yrs)
8 Processing Plant Capacity (July 2020 to Sept 2023) 2.5Mt
9 Copper in concentrate – LOM 203kt
10 Copper in concentrate – LOM 447Mlb
11 Copper in concentrate – Annual average 24kt
12 Copper in concentrate – Annual average 51Mlb
13 Silver in concentrate – LOM 6,097koz
14 Silver in concentrate – Annual average 690koz
My understanding:
- Simply the life of the mine
- 21.4 million tonnes of ore to be mined over the life of the mine
- For every 1 tonne of ore there is 4.76 tonnes of waste. If we use point 2 above is it right to say there will be 101.86Mt of waste? (21.4Mt * 4.76t).
- Every unit of ore contains 1.02% of Copper?
- Minimum amount of copper in ore to be acceptable?
- 10.3 grams of silver per tonne of ore?
- Operational life of processing plant
- Plant is able to process 2.5 million tonnes of ore per year
- Mine will produce a total of 203 kilotonnes of Copper
- Mine will produce a total of 440 million pounds of Copper
- Mine will produce an average of 24 kilotonnes of Copper per year
- Mine will produce an average of 51 million pounds of copper per year
- Mine will produce a total of 6,097 thousand ounces of Silver
- Mine will produce an average of 690 thousand ounces of Silver per year
Now is it fair to say that If i wanted to forecast revenue of Copper, say $2.50 per ounce, I would just multiply that by point 12 to get a yearly revenue number?
Appreciate the assistance but hopefully i have understood it!
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