How much is required to establish a medium-sized gold, platinum or ferrochrome mining company?
Preferably in South Africa, Zimbabwe or Zambia?
Let us say, you consider the definition of medium-size company to be a company with less than 250 people, but above 50 employed people, and balance sheet to be above 10 millions, but less than 50 million.
How much money is required to establish a medium-sized gold mining company?
You should start backwards with your calculation:
- You wish to earn US $10,000,000
- Calculate how much gold do you need to produce, to achieve double of that amount (calculate double, to achieve what you need at least)
- Find out, what is the average grade of gold in certain area, calculate less
- Find out what quantity of ores, per year, do you need to process, to gain the money in the step number 2.
- Calculate your estimated number of working days per year
- Divide the quantity of ores that you got in step 4, with the number of working days from the step 5start backwards
- Get the amount of ore volume that you need to process per day
- Find the available equipment, machinery, to purchase or in joint-venture to process the volume found in the number 7, include the second-hand, used equipment, new equipment, and include many offers, search everywhere, China, United States, and so on.
- Make a comparison of equipment and machinery that may handle the desired volume of ores that you got in the step 7
- Note the estimated investment into machinery and equipment
- By using the information in the step number 9, calculate how much energy, fuel, you need to spend in that time of one year, and what would be expenses for maintenance of machinery and equipment. Note the estimated investment into maintenance and energy.
- Calculate how many people will you need, by keeping in mind each organizational activity
- Calculate the salaries for those people, for at least the number of months, until you will start the actual production and getting more money than you are spending it
- Calculate all your other estimated expenses, such as energy, communication, accommodation, medicine, taxes, licenses, royalties, administration, estimate everything you find.
- Sum up the estimated amounts that you have got in the step number 10, the step number 11, step number 13 and the step number 14.
- If you don't come up with income, but you see more expenses than you are gaining in that estimation, you better change something in the above steps, and run it again.
- If you got more income over expenses, you have got your answer in 17 steps plan.
Mentor at Start Your Own Gold Mine
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