Gold Club Asia Forums

Go Back   Gold Club Asia Forums > Gold Club Asia > Economy and Stock Markets

Reply
 
Thread Tools Display Modes
  #1  
Old 09-11-2012, 11:05 PM
siginah siginah is offline
Senior Member
 
Join Date: Jan 2008
Posts: 650
Default Global Copper Production Under Stress

Richard (Rick) Mills
Ahead of the Herd

Capital inputs account for about half the total costs in mining production - the average for the economy as a whole is 21 per cent. Obviously many of the costs, once incurred, cannot be recovered by sale or transfer of the fixed assets.

Mining is an extremely capital intensive business for two reasons. Firstly mining has a large, up front layout of construction capital called Capex - the costs associated with the development and construction of open-pit and underground mines. There are often other company built infrastructure assets like roads, railways, bridges, power generating stations and seaports to facilitate extraction and shipping of ore and concentrate. Secondly there is a continuously rising Opex, or operational expenditures. These are the day to day costs of operation; rubber tires, wages, fuel, camp costs for employees etc.

Copper mining has become an especially capital intensive industry - the average capital intensity for a new copper mine in 2000 was between US$4,000 - 5,000 to build the capacity to produce a tonne of copper, now capital intensity is north of $10,000/t, on average, for new projects.

http://aheadoftheherd.com/Newsletter...der-Stress.htm
__________________
"Capitalism without failure is like Christianity without Hell." - Kyle Bass
Reply With Quote
  #2  
Old 09-11-2012, 11:09 PM
elcheapo's Avatar
elcheapo elcheapo is offline
Senior Member
 
Join Date: Apr 2012
Location: Little red dot
Posts: 194
Default

copper bars stacking anyone? poor man's metal

http://www.providentmetals.com/bullion/copper.html
Reply With Quote
Reply


Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT +8. The time now is 10:39 PM.


Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2021, vBulletin Solutions, Inc.