Metal Value per Tonne - How You Can Determine the Mineral Value per Tonne
The metal value gives you an idea about the potential profitability of a mineral project. By calculating the
metal value and then deducting the (estimated) mining costs you get an insight into the viability of bringing this mineral project into
production - at current metal prices.
An indication of the current mineral value of the rocks can be found by using Kitco's Rock
Calculator. As you can see in the image below you can choose between different variables in the column
Units/Weight depending on how the drill results are reported (%, grams / tonne, ounces / tonne
and pounds / tonne).
You can click on the image link below after which you will be redirected to the specific subpage on Kitco's
To find out where you can find the prices for the minerals not mentioned in Kitco's Rock Calculator, I
refer you to the note at the bottom of this page.
As it depends on the mining company if it reports its drill results in grams per tonne or ounces
per tonne, I recommend that you remember the number 0.029, as you will be needing this number
to convert troy ounces into grams. On the break even analysis page, I stated that 1 troy ounce equals 31.103481 grams per
ton, which equals 34.2857 grams per tonne. As 1 gram equals 0.0321492 troy
ounces, the conversion factor is calculated as: 0.0321492 / 34.2857 x 31.103481 = 0.0291652
Thus, when a mining company reports a drill result of 0.145 ounces per tonne, you now know that this equals
(0.145 / 0.029 =) 5 grams per tonne. Conversely, when a mining company reports a drill result of 10 grams per
tonne, you now know that this equals (10 x 0.029 =) 0.29 ounces per tonne.
On the break even analysis page, I also explained how you can convert a drill result reported in a
percentage (%) to an amount in pounds (lbs) per tonne. You will find this explanation under the header
How to Calculate the Cut-Off Grade, but in summary: 1% equals to 22 pounds.
How To Calculate the Metal Value per Tonne
In the following table, I have created some examples for calculating the metal value, using the metal prices
from March 23, 2012 from the Kitco image above.
Metal Value per Tonne
2 (percent) * 22 (percentage to pounds) * $3.82 (copper price per
1.8 (percent) * 22 (percentage to pounds) * $8.30 (nickel price per
1.14 g/t Gold
1.14 (gram per tonne) * 0.029 (gram to troy ounces) * $1649.80 (gold price
70 g/t Silver
70 (gram per tonne) * 0.029 (gram to troy ounces) * $31.67 (silver price per
Although mineral values are often expressed in tonne, sometimes they are expressed by ton as well.
As 1 ton equals 907.18474 kilograms and 1 tonne equals 1,000 kilograms, just remember the difference
between tonne and ton is approximately 10% (mnemonic: less letters, less outcome).
For more information about how to calculate the metal value of a deposit as a whole, I
recommend you to read the mineral deposit value page too.
If you would like to be the first to be informed when I add new content to
UndervaluedEquity.com, please leave your details in the name grab form on theSupportpage!
You can also support me directly by clicking on the advertisements that appeal to
you,or by making a voluntarily donation with Paypal.
Your support helps me to speed up the process of adding great, free content to
Note: You can use the commodity charts on UndervaluedEquity.com to find a more complete coverage of
the available base metals prices, energy prices, fertilizer prices and precious metals prices.
What Type of Content Can You Expect to Find on UndervaluedEquity.com
Today's News Related to the Global Energy and Mining Stocks.On
this page a RSS feed is displayed with stock market news related to the energy and mining sectors.
You can subscribe to this free RSS feed too!
How I Conduct My Stock's Due Diligence Investigation Process.If
you want to know what I learned while I was conducting my due diligence, I recommend you to read
all the chapters of the investigation process.
Are These the Best Stocks to Buy Today.In my stock watchlist you
find stocks who offer great potential, but at the time I analysed these stocks they didn't comply
with all my guidelines from my due diligence chapters.
Are These the Best Shares to Buy Now.As the year 2015 has just started, I
believe it's about time that I share my stock portfolio with you. Therefore, you will find my
updated stock portfolio on this page.
Jeroen Snoeks is the founder of UndervaluedEquity.com, a website for
investors passionate about investing in undervalued stocks. ThroughUndervaluedEquity.com, he shares his
experience and knowledge and will soon reveal his personal stock portfolio.