v115n8a17 Parametric estimation of capital costs for ...

A generic mining cost structure There are two main types of costs for mining projects – operating and capital costs. Figure 1 is a schematic representation of the generic cost breakdown for mines. A brief overview of what these costs entail is discussed in the following sections. Capital costs Capital costs in mines can be split into start-up

The corporate cost of capital - SAIMM

the corporate cost of capital remains singularly determinable, with additive components of risk and uncertainty often incorporated in the final analysis. This paper discusses and details the fundamental, numerical determination of the corporate cost of capital. * Resources Consultant, BSG Resources, Illovo, South Africa.

The Crazy World Of Mining Costs – Investiv Daily

Dec 02, 2016· This is a non-GAAP metric, but widely recognized as the methodology to use. Before we discuss all-in costs in more detail, let's first discuss the other cost descriptions. Cash Cost, Total Cash Cost & Total Cost. Cash costs include the costs of production at site level per unit of output. Thus, the regular costs for operating the mining process.

Accelerated Investment Incentive - Canada.ca

Nov 21, 2018· For more information on the half-year rule, see Income Tax Folio S3-F4-C1, General Discussion of Capital Cost Allowance. Additionally, the Accelerated Investment Incentive will not apply for the additional allowance for mining property in class 41.2. The allowance for mining property is currently being phased out.

What is the Cost of Mining Gold? - Visual Capitalist

May 21, 2013· We've analyzed the Top 50 Gold Mines to find the cost per ounce of gold by continent. The top 50 gold mines alone contain more than 33.5% of the world's gold ounces.

Owner's Costs in Capital Cost Estimating - EPC Project ...

Mar 12, 2017· What are Owner's Costs in an EPC Capital Project? This is a question that comes up quite often in capital cost estimating. So, I thought I would share my point of view and experience on this subject.

How much does it really cost to mine an ounce of gold ...

Sep 19, 2014· How much does it really cost to mine an ounce of gold? ... because it is a more accurate reflection of the true costs of mining," Barrick spokesman Andy Lloyd said. ... it pulls capital ...

Mine & Mill Equipment Costs Estimator's Guide, Capital ...

Mining Equipment Fleet - 10,000 tonne per day (ore + waste) open pit mine. The following listings of equipment capital and operating costs are taken directly from the current Mining Cost Service Manual and Mine and Mill Equipment Cost Estimator's Guide.In addition to the items listed here, these manuals contain entries for 74 additional excavators, 50 additional haulers, 16 dozers, 6 graders ...

WHY BUILDINGA MINE ON BUDGET IS RARE

Oct 16, 2014· Capital Cost Overruns: Serious problem, long history, no explanation • Capital cost overruns are significant and persistent • Average overruns of 20%-60% recorded since 1965 • Mining industry has a worse record than other industries • Merton (1988): Average overrun for mining = 1.99 • Oil refineries = 1.63; process plants = 1.67 • Many others have studied capital cost overruns in ...

Mining Costs - CAPEX vs. OPEX - UndervaluedEquity.com

In the feasibility study you should look for the expected CAPital EXpenses (CAPEX) and OPerational EXpenses (OPEX) to inform yourself about the mining costs of the specific project. Capital Expenditures (CAPEX) Capital expenditures are the investments incurred by a mining company in their fixed assets to increase the value of that asset. Most ...

Mining Project Costs and Financing - EI Sourcebook

Mining Project Costs and Financing Michael M Heydari, Ph.D. Mineral Economist ... Cost of Capital –amount or charge that must be paid for borrowing or issuing capital equity. Mining Project Costs Mine exploration Mine development Environmental, social and Infrastructure

pwc.com.au Productivity and Cost Management

mining industry Australia has some of the world's largest coal reserves, but is ... Capital Cost Maintenance Cost Operating Cost Equipment effectiveness Maintenance losses & ... Productivity and cost management in the mining industry ...

Mining Tax Canada | Treatment of Expenditures in Canada

Mining Tax Canada Canada's Mining Tax Resource. Expenditures on certain kinds of property ("depreciable property") are the subject of "capital cost allowance" ("CCA"), the tax version of the accounting concept of depreciation. For Canadian tax purposes, depreciable properties are grouped into different classes, with each class having its own separate rate of CCA.

The Impact of Country of Origin on Equipment Capital Costs ...

Mine & Mill Equipment Costs: An Estimator's Guide. This guide includes both Capital Costs and Hourly Operating Costs for over 3,000 pieces of equipment commonly found in …

A Guide to Canadian Mining Taxation

mining revenues and disenchanting investors. How much capital will eventually flow back to mining equities is in doubt, given the success of commodities ETFs. At the same time, mining companies have been struggling to control operating and capital costs that threaten their margins. In these circumstances, many mining companies have been more

WHY BUILDINGA MINE ON BUDGET IS RARE

Oct 16, 2014· Capital Cost Overruns: Serious problem, long history, no explanation • Capital cost overruns are significant and persistent • Average overruns of 20%-60% recorded since 1965 • Mining industry has a worse record than other industries • Merton (1988): Average overrun for mining = 1.99 • Oil refineries = 1.63; process plants = 1.67 • Many others have studied capital cost …

Mining capital cost estimation using Support Vector ...

Determination of Capital Expenditure (CAPEX) is a challenging issue for mine designers. Underestimating the capital cost in mining projects may postpone the construction and accordingly the production phases. In addition, overestimating the capital cost may decrease value of the project.

Capital Cost Overrun and Operational Performance in …

› Capital cost overruns (CO) have been endemic and significant. › EDC has a significant lending portfolio in mining and metals. › As a lender, EDC faced the issue which drove the desire to identify and mitigate potential CO's. › 2012 study identified sources …

Mining capital cost estimation using Support Vector ...

The base of this model is according to polynomial least square approach. It is a model derived from collected data of Canadian mining capital cost like cost of site preparation, cost of overburden stripping, open pit and underground mining capital cost (Bertisen and Davis, 2008, Pohl and Mihaljek, 1992). O'Hara model is only considering ...

How Much Does a Mine Cost?

Jun 01, 2010· Capital costs are typically a mining company's biggest expense – and an eye-watering one. On top of that, companies must pay labor costs, interest payments and environmental cleanup (assuming the country has and enforces environmental regulations).

Understanding Operating Expense vs. Capital Expense

An operating expense (OPEX) is an expense required for the day-to-day functioning of a business. In contrast, a capital expense (CAPEX) is an expense a …

Americas Mining & Metals Forum September 2013

to provide further transparency into the costs associated with producing gold. In June 2013, the WGC published a Guidance Note on "all-in sustaining costs" and "all-in costs" metrics. Traditionally, cash cost reporting, introduced in 1996, has focused only on the mining and processing costs incurred.

Bias and Error in Mine Project Capital Cost Estimation ...

It is a model derived from collected data of Canadian mining capital cost like cost of site preparation, cost of overburden stripping, open pit and underground mining capital cost …

Mining costs and prices of minerals

Feb 11, 2016· Mining costs and prices of minerals 1. Mining Costs And Prices of MineralsMining Costs And Prices of Minerals Submitted for : Prof. Dr .Mohamed El Wageh By: Ahmed Mohamed Wassel Mohamed Abdel Nabi Essa Mahmoud Mustafa Khallaf 2.

All-in sustaining costs and all-in costs | World Gold Council

The use of the "all-in sustaining costs" and "all-in costs" metrics has been widely adopted by gold mining companies as part of their overall reporting disclosure. These non-GAAP metrics have helped provide greater clarity and improve investor understanding. All companies involved in gold-mining are encouraged to use these metrics.

Capital & Operating Costs - Panoramic Resources

Life-of-mine capital expenditure, inclusive of pre-production costs, mining capital development and sustaining property, plant and equipment (PP&E), but excluding closure costs, is estimated to be $235M (Table 6). The estimated annual capital expenditure profile is shown in Figure 5. Costs are as at September 2017.

IAS 16 — Stripping costs in the production phase of a mine

IAS 16 — Accounting for production phase stripping costs in the mining industry; 07 Jan 2010. The IFRIC discussed how to define the scope of its project on accounting for stripping costs in the production phase of a mine. IAS 16 — Accounting for stripping costs in the production phase of a surface mine; 05 Nov 2009