Profitability: Sensitivity and Risk Analyses of the Sabi Gold Project

Author

Samuel Frimpong, Missouri University of Science and TechnologyFollow

Abstract

This study examines the economic viability of the Sabi gold deposit (oxide cap), based at Zvishavane, about 400 km south of Harare in Zimbabwe. A detailed examination of the technical and economic factors which can affect the viability of a mineral project was undertaken using sensitivity analysis. The analysis revealed that eight variables: grade of the ore, annual production rate, preproduction rate, preproduction period, operating cost, mill recovery efficiency, inflation, the price of gold and the project discount rate are sensitive and their changes could significantly affect the project viability. Risk analysis, using the Monte Carlo simulation technique on the probable sensitive variables, was carried out. It was established that the probability of the project failure is 29%.

Recommended Citation

S. Frimpong, "Profitability: Sensitivity and Risk Analyses of the Sabi Gold Project," University of Zambia, Jan 1988.

Department(s)

Mining Engineering

Comments

Thesis/Dissertation

Document Type

Book

Document Version

Citation

File Type

text

Language(s)

English

Rights

© 1988 University of Zambia, All rights reserved.

Publication Date

01 Jan 1988