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Plant & Business for Sale

Due to some health problems, the sole owner of Moon Metal SPRL is offering the plant and business for outright sale, on a walk in - walk out basis.
The smelter plant is brand new with many imported accessories and consumables. There is a friendly investment culture being nurtured in the country.

Details of Construction

Diagram A: Basic Plan of Premises


The dimension of the plot housing the plant is 100 metres X 85 metres (2.1004 acres), with a brick boundary wall all around.
The production facility (about 30 metres X 30 meters) consists of the actual smelter housing, a material-mixing platform and a production store.
A power supply housing of 55kVA is available, together with a Diesel Generator Set of 150kVA configured for automatic transfer in case of power loss.
In addition, there are two water basins with a capacity of 240,000 litres that are used to cool water jackets.
The administrative block includes offices for a production manager, a finance manager, a public relations manager, laboratory equipment, a changing room and a security room.
A director’s office is currently under construction.
A paved path for heavy vehicles, around the plant is also currently being built.

Plant Capacity

The current installed capacity allows for production of 12 metric tonnes of copper blisters every 24 hours, with 94 to 97% purity.
The size of copper ore that can be smelted can be a minimum of 3mm (in diameter) and should between 27mm to 50mm; 25% of the ore could be 3mm and the remaining can be any size up to 50mm.
The ore should ideally have 25 - 30% copper content, although the plant can process ore that has at least 22% copper content.
Between 6 - 8 tonnes of copper blisters can be obtained from the use of 35 - 40 tonnes of copper ore (with 25 - 30% copper content) and the correct proportions of copper ore, limestone and ironstone.

Critical Success Factors

The correct size and grade of copper ore must constantly be procured in advance. Uninterrupted production requires at least 800 - 1000 tonnes of ore - this guarantees production of 150 - 200 tonnes of copper blisters per month.

The Value of Copper

The price of black copper and indeed copper ore itself, is directly linked with the value of futures contracts on the London Metal Exchange (LME). At present, this value is about US$8,024 (June 13th 2008, cash buyer). Prospective price increases are expected in the near future as demand for Copper remains strong in China and India for the 2007 and 2008 timeframe.

Table B: LME Historical Data: Copper US$/tonne

Output Capacity

With the current furnace in place, the plant should yield at least 150 - 200 tons of black copper per month of continuous processing. This output is dependent on procurement and availability of about 1000 metric tons of copper ore to be in circulation, during this processing.

Investment Data

The investment data presented in Table C below is based on a LME price of US$8,000 less 19%, thereby resulting in a per-ton value of the final product of approximately US$6,480.

Investment variable

Estimated Value

Estimated working capital

US$1,500,000

Estimated project payback period

15 - 18 months of actual plant production

Estimated net margin on sales value

25% (if full capacity is utilized); a worst-case scenario yields 20%

Table C: Investment data