Market prices Sulphur Ridge Mi

Market prices Sulphur Ridge Mining is considering the development of a new calonium mine at Moose Bend in northern Alberta. The mine would require an upfront investment of $110 million and would produce 100,000 tons of high-grade calonium a year, which is small compared with the current annual worldwide production of 9 million tons. Proved reserves of calonium at the Moose Bend mine are 1.2 million tons. The extraction cost is estimated at $120 a ton and is expected to remain constant in real terms. The market price of calonium is currently $240 a ton, and the consultancy firm, Powder River Associates, is estimating that the real price of calonium will increase by 3% a year in real terms for the foreseeable future. There are several other producers of calonium. Several Canadian mines are believed to be barely breaking even. Others with costs in the $150 to $200 a ton range are making good profits. There are no taxes and the real cost of capital is estimated as 8%. Calonium mining is an environmentally friendly activity, and there are zero costs to shutting down a mine. Should Sulphur Ridge go ahead with the project? Make whatever additional assumptions you think are needed.  

Place this order or similar order and get an amazing discount. USE Discount code “GET20” for 20% discount

Posted in Uncategorized