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Mining and metals

Unit economics of a copper mine

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The prompt

Ridgecrest Copper (a fictional company) runs an open-pit mine in Chile. It processes 25 million tonnes of ore a year at a grade of 0.8 percent copper, with 90 percent recovery. Mining and processing cost USD 24 per tonne of ore. Transport, smelting charges and site overheads add USD 210 million a year. The copper price is USD 9,500 per tonne. What is the cash cost per tonne of copper and the yearly cash margin?

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