Page 49 - Leshobo Technical Report_October2016
P. 49
Technical Report for the
LESHOBO LIMESTONE
Taung, North-West Province
8.3. Project Viability
The project could be viable if it could be proven that the assumptions on market prices
are accurate or that the actual market prices are higher than the assumed prices.
In an instance where the assumptions on market prices are accurate, the benefits from
the project would be as follows:
Sales @R250X50 000 Tons 12,500,000.00
Less Cost of Sales 6,004,767.00
Equals Contribution Margin 6,495,233.00
Less Total Operating Costs 1,820,000.00
Personnel Costs 500,000.00
Diesel 920,000.00
Other 400,000.00
Equals Profit before Earning and Taxes 4,675,233.00
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