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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: tyc:> who wrote (6067)3/23/2004 3:37:52 PM
From: Condor  Respond to of 313809
 
"nominal"

That's what we're both saying I believe (in our opinion).

I went to a heavy equipment auction and watched large used crawler excavators sell for $ 10,000. They looked pretty good too. I thought "shit..I should buy one" but then decided against it because it didn't fit my needs. New they were $ 150,000.
If you buy a used car, a car is not just a car. It needs to be the car that fits the bill. No? Both get from point A to B but the 76 Chev gets 14 miles to the gallon. etc. etc. etc.
A mill is not just a mill. You cannot ignore the need for process efficiency and effectiveness, energy consumption design, spare parts availability and the like. You might get 74% recovery from the old bugger but 87% from new. After spending a fortune to get the ore to surface, the bottom line is dictated by the recovery and cost of process.
I see rinky dink outfits buy old plants but these shoestring outfits usually encounter margin problems. All this JMO.

edit: In my area there are lots of mines. I have seen many plants over the years just razed and 20 miles away, new ones built.

Cheers

C



To: tyc:> who wrote (6067)3/23/2004 3:39:19 PM
From: I_C_Deadpeople  Read Replies (2) | Respond to of 313809
 
I can only tell you that the take down cost of equipment can be quite costly. A year or so ago we were looking at a 5 year old piece of equipment from a place gone belly up. The equipment replacement cost was $150,000 (landed and assembled). The lowest quote we got to take down this equipment, transport it and reassemble it was $50,000. We ended up buying new instead.


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