Mining Company Valuations
- The valuation of a mine can move rapidly based on some key drivers
- How much ore is left to mine (mine life)
- % of valuable ore per ton
- Cost to mine a ton of ore
- Market price of the metal being mined
- The cost of energy has a huge impact on the mining industry
- One of the largest mining costs is energy - to move rock, crush it, drill, etc.
- For some ores the cost of energy can be 50% of the cost!
- The mining industry has become less labor intensive over time as technology has improved