Question: A mine which is milling 100 000 tons per month changes its policy by increasing development and waste sorting and reducing the stope width while

A mine which is milling 100 000 tons per month changes its policy by increasing development and waste sorting and reducing the stope width while maintaining the tonnage milled. How is the profit per ton affected if: 

- The development tonnage increased from 8 000 tons at 4.70 g/t to 10 600 tons at the same value? 

- The cost of development rises from R5.50 to R7.50 per ton milled? 

- Surface sorting is increased from 7% at 0.5 g/t to 14% at 0.3 g/t? 

- The average stope width is reduced from 110 cm to 106 cm? 

- The breaking costs per m2 increased from R12.00 to R13.75? 


The original: average stope value Mine Call Factor Recovery Price of gold 11 11 = 11 = = 13.20 g/t 92% 97% R3

The original: average stope value Mine Call Factor Recovery Price of gold 11 11 = 11 = = 13.20 g/t 92% 97% R3 000 per kg

Step by Step Solution

3.48 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To calculate the effect on profit per ton we need to consider the changes in costs and revenues associated with each scenario Lets calculate the impac... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!