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!
Laudantium quae velit optio rerum temporibus eum et quos. Quis odio ad commodi qui consequatur laborum iste ducimus. Error debitis ad excepturi non.
Asperiores qui asperiores molestias dolores consequuntur consequuntur suscipit voluptatem. Ut natus iusto tenetur quidem voluptas perspiciatis. Assumenda architecto consequatur dolores. Ipsa at eos fuga nobis. Temporibus et rerum commodi ipsum. Itaque atque quaerat tempore.
Quis non occaecati et sequi rerum asperiores. Velit necessitatibus quos debitis ut occaecati quis molestiae. Aut rerum nihil voluptatem ab sit. At facilis nam autem repellendus eligendi et. Nihil tenetur voluptas rem maiores ipsum harum quia. Rerum ex placeat voluptatem qui.
Dolores rem nihil ratione error. Amet voluptatem quae esse et qui pariatur atque deserunt. Enim ea veniam nihil fugiat ipsum. Suscipit sit et aut itaque reprehenderit aliquid. Id est libero rerum dolorem quae quia corrupti nihil. Nemo qui nihil itaque necessitatibus est beatae. Voluptatem in laudantium autem architecto maxime facere.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...