Mining budgeting
MINE PROFITABILITY CALCULATOR
From your production assumptions, costs and selling price, get gross margin, net margin, EBITDA and the break-even tonnage you need to cover fixed costs.
Profit metrics
Gross margin = (revenue − direct opex) ÷ revenue. Net margin = (revenue − total opex − royalty − admin) ÷ revenue. EBITDA = revenue − cash opex (before depreciation, interest, tax).
Break-even
Break-even tonnes = fixed cost ÷ (revenue/t − variable cost/t). Below break-even, every extra tonne loses money.
Worked example
Revenue $1.13 m, direct opex $620 k, royalty $34 k, admin $76 k → gross margin 45 %, net margin 35 %, EBITDA $530 k, break-even 6,300 t/m of ore.
Frequently asked questions
What's a healthy mine margin?
Small mines target 30–50 % EBITDA margin to cover capex and survive metal-price cycles. Below 20 % is fragile.