Costs and net profit   Given the following information.   Left pit wall overall slope angle: 52 ◦ Underground total mining cost: $37.50 /tonne Surface mining cost: $21.25 /tonne Surface stripping cost: $3.90 /tonne of waste Density of ore: 2750 kg/m3 S.G. of waste: 1.8 Strike length of orebody: 485 m Grade of gold ore: 8.2 g/tonne Dilution: 0 % Gold bullion selling price: $1150/oz Mill recovery: 92% Milling cost: $32 /tonne Tax rate: 32% The orebody outcrops at the surface. The existing surface is flat/level   When underground mining at this operation should be contemplated, calculate: The total cost of mining the ore of the open pit. The total cost of mining the waste of the open pit. The expected net profit after income taxes for the life of the pit operation.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Costs and net profit

 

Given the following information.

 

Left pit wall overall slope angle: 52 

Underground total mining cost: $37.50 /tonne

Surface mining cost: $21.25 /tonne

Surface stripping cost: $3.90 /tonne of waste

Density of ore: 2750 kg/m3

S.G. of waste: 1.8

Strike length of orebody: 485 m

Grade of gold ore: 8.2 g/tonne

Dilution: 0 %

Gold bullion selling price: $1150/oz

Mill recovery: 92%

Milling cost: $32 /tonne

Tax rate: 32%

The orebody outcrops at the surface.

The existing surface is flat/level

 

When underground mining at this operation should be contemplated, calculate:

  1. The total cost of mining the ore of the open pit.
  2. The total cost of mining the waste of the open pit.
  3. The expected net profit after income taxes for the life of the pit operation.
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