It appears there is a calculation that helps determine the breakeven point beyond which the cost to remove overburden becomes prohibitive. This calculation is used to derive the Break Even Stripping Ratio (BESR)
The BESR is calculated for the point at which break-even occurs and the necessary stripping is paid for by the net value of the ore removed. Generally, the BESR can be determined as follows:
BESR = I - CT / CW
I = Revenue/tonne of ore CT = production cost per tonne of ore (incl. all costs to the point of sale, excluding stripping) CW = stripping cost per tonne of waste
For example, if we assume
$400 / tonne finished KCL $100 / tonne processing, shipping, taxes, bribes, etc $1 / tonne to remove material
and apply it to DK-10-11 Zone 1 (3.3M @ 33%)
I = $133 (.33 X $400) CT = $33 (.33 X 100) CW = $1
BESR = 133-33/1 = 100
IE: Using these numbers, we can remove 100M of overburden to get at 3.3 M of ore @ 33% grade and still "break even"
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