gold mining business plan [sample template for 2021]
Do you want to start a gold mining company? If YES, here is a detailed sample small scale gold mining business plan template & feasibility report.There are money spinning businesses that are monopolized by wealthy people and accredited investors and one of such businesses is operating a gold ore mine.
The gold ore mining business is indeed a profitable business, but you must be ready to scale through very high barriers before launching this type of business. If you have conducted your market research and feasibility studies, the next step to follow is to write a detailed blueprint of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your services amongst others.
Players in the Gold and Silver Ore Mining industry primarily mine gold and silver-bearing ores. Mining activities include the development of mine sites and the on-site processing of ore into a concentrate or bullion. Gold and silver ore mining companies typically retain ownership of the semi-processed gold or silver products and pay for further refining on a toll-charge basis.
If you are an observer of the Gold and Silver Ore Mining industry, you will notice that the industry revenue is largely a function of production volume and commodity prices. For the Gold and Silver Ore Mining industry, output volumes and sales prices for both gold and silver have fallen over the past five years, leading to significant industry contraction.
Meanwhile, demand from manufacturers of electrical equipment, electronic products and jewelry, which comprises the industrys primary markets, has stagnated or even declined over the past five years as a result of high import penetration and input costs. Overall, industry revenue is expected to decline over the five years to 2017.
In the united states of America, the industry generates over $9 billion annually from more than 162 gold and silver ore mining companies scattered all around the country. The industry is responsible for the employment of over 14,282 people. Experts project the industry to grow at a -9.0 percent annual rate. Barrick, Kinross Gold and Newmont are the market leaders in this industry in the United States of America; they have the lion market share in the industry.
A recent report published by IBISWorld shows that the five years to 2017 have been volatile for the Gold and Silver Ore Mining industry. The report further stated that the industry revenue spiked until 2012, proving this industry to be one of the few that benefited from the financial crisis, as well as the years of economic instability that followed.
In times of economic turmoil, investors look to buy safe-haven assets such as gold and silver, causing gold and silver prices to surge. This helped industry revenue to grow through to 2012. In fact, strong demand from domestic and international investors drove gold prices to all-time highs. Furthermore, an undersupply of gold due to decreased industry production in the 2000s further contributed to the spike in prices.
If you are considering starting a gold mining business whether on a small scale or on a large scale, then you should ensure that you obtain all the necessary permits from the local, state and federal government. The truth is that this type of business does pretty well when it is strategically positioned.
In summary, gold mining business is a profitable business venture and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale on a large scale with robust distribution networks all across the United States of America and other countries of the world.
Our business goal as a gold mining company is to become the number one choice of jewelry making companies and other companies that make use of gold and silver in the United States and other countries of the world. As a business, we are willing to go the extra mile to invest in owning our own environmentally friendly gold and silver mines and also to hire efficient and dedicated employees.
We have been able to secure permits and licenses from all relevant departments both at the local government and state level in the United States of America. TTK Gold Mining Company is set to redefine how a standard gold mining business should be run all across the world. This is why we have put plans in place for continuous training of all our staff.
The demand for gold and silver is not going to plummet any time soon which is why we have put plans in place to continue to explore all available market around the United States and other countries of the world. In the nearest future, we will ensure that we create a wide range of distribution channels all across the United States of America and other countries of the world.
TTK Gold Mining Company will at all-time demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our customers needs precisely and completely.
TTK Gold Mining Company is a partnership business that will be jointly owned by Tony Kenneth, Tyson Barker and Karis Murphy. Tony Kenneth who is the Chief Executive Officer of the Company has a Degree in Mining Technology with over 10 years experience working in related industry as a senior manager cum mining engineer prior to starting TTK Gold Mining Company. He will be working with a team of professionals to build the business and grow it to enviably heights.
TTK Gold Mining Company is established with the aim of maximizing profits in the gold and silver mining industry. We want to compete favorably with leaders in the industry which is why we have but in place a competent team that will ensure that our products are of high standard.
We will work hard to ensure that TTK Gold Mining Company is not just accepted in the United States of America, but also in other countries of the world where we intend supplying our products. Our products are listed below;
As part of our plan to build a top flight gold mining company in Boise County Idaho that will favorably compete with leaders in the industry, we have perfected plans to get it right from the onset which is why we are going the extra mile to ensure that we have competent employees to occupy all the available positions in our company.
Due to our drive for excellence when it comes to running a standard gold mining company, we were able to engage some of the finest business consultants in the United States of America to look through our business concept and together we were able to critically examine the prospect of the business and to assess ourselves to be sure we have what it takes to run a standard gold mining business that can compete favorably in the industry.
In view of that, we were able to take stock of our strengths, our weakness, our opportunities and also the threats that we are likely going to be exposed to in the United States of America. Here is a of what we got from the critically conducted SWOT Analysis for TTK Gold Mining Company;
Another factor that counts to our advantage is the background of our Chief Executive Office; he has a robust experience in the industry and also a pretty good academic qualification to match the experience acquired which has placed him amongst the top flight players in the gold and silver mining industry. We are not ignoring the fact that our team of highly qualified and dedicated workers will also serve as strength for our organization.
We do not take for granted the facts that we have weaknesses. In fact, the reality that we are setting up a gold mining company in the United States might pose a little challenge. In essence our chosen location might be our weakness.
The opportunities available to us are unlimited. There are loads of jewelry making companies and other manufacturing companies that make use of raw gold all across the globe and all what we are going to do to push our products to them is already perfected.
The threat that is likely going to confront us is the fact that we are competing with already established gold mining companies in the United States and other countries of the world. Of course, they will compete with us in winning over the available market. Another threat that we are likely going to face is unfavorable government policies and economic downturn.
Gold and silver mining is a lucrative business in the United States and Canada and in looking at the trends of these mega countries over the course of golds bull, it is apparent that the results vary quite substantially; and China and Russia that have experienced the biggest growth over this stretch. China in particular has carved out an incredible growth story, with its production volume up a staggering 92 percent since 2001.
Talking about the two North American land giants, their gold-mining trends have been ugly over the last decade or so. Incredibly, both the US and Canada have seen output fall by nearly a third to 2011s respective tallies of 237mt and 110mt. Their mature gold-mining infrastructures were just decimated by the secular bear that preceded the current bull.
Up until the 1990s the US and Canadas gold-mining industries operated like well-oiled machines, with the miners consistently putting forth sizeable capital towards exploration and development. Exploration was successful in renewing and growing the reserves that were being mined, and continual expansion and new development sustained and even grew production.
It is common trend in the gold and silver ore mining line of business to find mining companies positioning their business in locations and communities where they can easily have access to mines and of course cheap labor. If you make the mistake of positioning this type of business in a location where you would have to travel a distance before you can access gold and silver mines, then you would have to struggle to make profits and maintain your overhead and logistics.
Also, another trend in this line of business is that most registered and well organized mining companies look beyond the market within their locations or state; they ensure that they strike business deals with leading jewelry making companies in the United States of America and other countries of the world.
The truth is that if as a gold mining company you are able to become a vendor to one or more jewelry making giants in the United States of America or in other countries of the world, you will always continue to smile to the bank.
When it comes to supplying product from gold and silver mines, there is indeed a well-defined market. This goes to show that the target market for products from gold mining companies is far reaching. In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to engage in supply of raw gold and silver to the following organizations;
As a standard and licensed gold mining company, we know that gaining a competitive edge requires a detailed analysis of the demographics of the surrounding area and the nature of the existing competitors. And even if you are successful at first, new competitors could enter your market at any time to steal your regular customers. Hence we will not hesitate to adopt successful and workable strategies from our competitors.
Another competitive advantage that we have is the vast experience of our management team; we have people on board who understand how to grow a business from the scratch to becoming a national phenomenon. Our large and robust distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
One thing is certain when it comes to gold and silver mining, if your business is strategically positioned and you have good relationship with players in the jewelry manufacturing industry, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in and around the United States of America and we are quite optimistic that we will meet our set target of generating enough profits from the first six months of operation and grow the business and our clientele base.
We have been able to critically examine the gold and silver ore mining line of business, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in the United States of America.
Below are the sales projections for TTK Gold Mining Company, it is based on the location of our business and other factors as it relates to small scale and medium scale gold and silver mining company startups in the United States of America;
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there wont be any major economic meltdown and there wont be any major competitor offering same product and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
Before choosing a location to start TTK Gold Mining Company, we conducted thorough market survey and feasibility studies in order for us to penetrate the available market in the United States of America. We have detailed information and data that we were able to utilize to structure our business to compete with other gold and silver mining companies.
We hired experts who have good understanding of the gold and silver ore mining line of business to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market.
Regardless of the fact that our gold mining company can favorably compete with other leading mining companies in the United States of America and in any part of the world, we will still go ahead to intensify publicity for all our products and brand.
TTK Gold Mining Company has a long term plan of exporting our product all across the United States of America and other countries of the world. This is why we will deliberately build our brand to be well accepted in Boise County Idaho before venturing out to other cities all across the United States of America and other countries of the world.
As a matter of fact, our publicity and advertising strategy is not solely for selling our products but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise TTK Gold Mining Company;
At TTK Gold Mining Company we will keep the prices of our products below the average market rate by keeping our overhead low and by collecting payment in advance from well established jewelry manufacturing companies that would require constant supply of raw gold and silver.
The payment policy adopted by TTK Gold Mining Company is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
In view of the above, we have chosen banking platforms that will enable our clients make payment for our gold and silver without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
From our market survey and feasibility studies, we have been able to come up with a detailed budget of how to achieve our aim of establishing a standard and highly competitive gold mining company in the United States of America and here are the key areas where we will spend our startup capital on;
No matter how fantastic your business idea might be, if you dont have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a gold and silver mining business.
TTK Gold Mining Company is a partnership business that is owned and financed by Tony Kenneth, Tyson Barker and Karis Murphy. They do not intend to welcome any external business partner which is why they decided to restrict the sourcing of startup capital to 3 major sources.
N.B: We have been able to generate about $500, 000 (Personal savings $400, 000 and soft loan from family members $100, 000) and we are at the final stages of obtaining a loan facility of $1.5 million from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
The future of a business lies in the number of loyal customers that they have the capacity and competence of their employees, their investment strategy and their business structure. If all of these factors are missing from a business, then it wont be too long before the business close shop.
One of our major goals of starting TTK Gold Mining Company is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to supply our raw gold and silver a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
TTK Gold Mining Company will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our companys corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
top five largest gold mining companies by production in 2020
The storied metal remains a popular resource due to its high value, useful properties and range of applications. While it is still commonly used in jewelry and crafting, it is also an important ingredient in electronics manufacturing, prized for its high electrical and heat conductivity.
According to the US Geological Survey, there are around 53,000 tonnes of global gold reserves, with an estimated 3,200 tonnes mined worldwide in 2020 a roughly 5% annual decline in output caused by the disruption of the Covid-19 pandemic.
Despite this operational disruption, however, the worlds top gold mining companies benefitted from rising commodity prices during the year as investors turned to the metal amid a downturn in traditional financial markets.
Its operations include six Tier One gold mines: Cortez, Carlin and Turquoise Ridge in Nevada; Loulo-Gounkoto in Mali; Kibali in the Democratic Republic of Congo (DRC); and Pueblo Viejo in the Dominican Republic.
In 2019, the company completed a merger with competitor Randgold in a $6.5bn deal. Later that year, it combined its Nevada assets with those of Newmont to create a joint venture known as Nevada Gold Mines, which is the worlds largest gold mining complex.
The miner operates primarily in Africa, with operations in Ghana, the DRC, Guinea, Tanzania and Mali. In 2020, it completed the sale of its two remaining South African assets Mponeng and Surface Operations.
It has a portfolio of mines across Russia, mostly in Siberia, the largest of which is Olimpiada in the Krasnoyarsk region, one of the largest gold mines in the world. Other significant operations include Blagodatnoye and Natalka.
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maaden awards $880m gold mining contract | arab news
The agreement was signed for Jac Rijk Al-Rushaid Contracting and Services Company to provide operational mining services at the gold mines. The range of services will include drilling, scaling, loading, hauling, re-handling, ore control, dewatering, crusher feed, and all related production activities at the mines.
Maaden on Sunday also announced the completion of the pre-operational stage at its third ammonia plant in Ras Al-Khair Industrial City. The $900 million project is expected to be completed in the fourth quarter of 2021 and will start operations in the first quarter of 2022, the Saudi Press Agency reported.
The ammonia plant is the first project as part of Maadens $6.4 billion Phosphate 3 expansion plan, which aims to add 3 million tonnes of phosphate fertilizer production capacity to Maadens portfolio. This will bring Maadens total production capacity of more than 9 million tonnes and make it one of the top three global phosphate fertilizer producers in the world.
Maaden CEO Abdul Aziz Al-Harbi said in a press statement: This is a tremendous milestone for our phosphate portfolio. The ammonia plant expansion will add over 1 million tonnes of ammonia production to reach 3.3 million tonnes, making Maaden one of the largest ammonia producers east of the Suez Canal.
The Kingdoms Ministry of Energy has estimated its untapped mineral resources to be worth about SR 5 trillion. Under Vision 2030, the government is aiming to triple the mining and metals sectors contribution to gross domestic product and create 200,000 jobs directly and indirectly by 2030.
Saudi Arabia has vast under-explored territories compared with other world-class mining countries. Maadens goal is to capitalize on that to become one of the worlds top mining companies, and we are making great strides in achieving this goal, Mosaed Al-Ohali, former CEO of Maaden, told Arab News in October 2020.
The increase in exploration spending is focused on brownfield drilling, assessment of potential greenfield targets and continued drilling at many prospective locations to maintain healthy ore reserves. We are working on two more gold mines that we expect to bring on stream around the middle of the decade, he added.
RIYADH:ACWA Power, the utility developer backed by Saudi Arabias Public Investment Fund (PIF), is planning to invest $16 billion in new projects around the world in 2021, ahead of plans for an initial public offering (IPO).
Early last year, CEO Paddy Padmanathan said the company planned to invest $10 billion in new projects in 2020. In light of the restrictions put in place by global governments as a result of the coronavirus (COVID-19) pandemic, some of these plans took longer to materialize.
The only challenge that we had on the new growth business is that some of the transactions where we were successful have taken anywhere between three to six months more in coming to what I would call the end of the development phase, which is the financial close and start of the construction, Rajit Nanda, ACWAs chief portfolio management and interim chief investment officer, told Arab News.
We did approximately $3.5 billion of projects during the course of 2020, taking them through to financial close, and during the course of 2021 we are targeting about $16 billion of projects under close, four of them have already closed actually, a couple of them closing in the next 30 days as we speak.
The investment officer said ACWA Powers main geographical focus is the Gulf Cooperation Council (GCC), with Saudi Arabia at the core of it, but it is also looking at opportunities in Africa and at markets in Central Asia and parts of Southeast Asia, such as Vietnam, Indonesia and Bangladesh.
At the end of last year, ACWA Power announced it will develop Azerbaijans first wind power development in collaboration with local entities, as part of joint energy projects with the Kingdom worth $300 million.
We already have very important positions in countries like Egypt and Morocco. But we are looking at a few other countries, like Senegal and Tunisia and so forth, in terms of our expansion objectives, Nanda explained.
Established in Riyadh in 2004, ACWA Power employs around 3,500 people and is currently active in 13 countries in the Middle East, Africa, Central Asia and Southeast Asia. Its portfolio includes 64 assets with an investment value of SR248 billion ($66 billion).
The company has gone through some very interesting dynamics in terms of evolution. One of them, which is a very important one, is the fact that the sovereign wealth fund of the Kingdom of Saudi Arabia is now a 50 percent important shareholder in ACWA Power, Nanda said.
Its association with PIF means the company has been able to win some major contracts related to the Kingdoms Vision 2030 megaprojects. One of the most prominent recent examples is the $6 billion hydrogen project, in partnership with NEOM and Air Products.
The project is now in its early stages, with completion expected by 2025. In an interview with Asharq News, the Chairman of ACWA Power Mohammad A. Abunayyan, said: NEOM city enjoys a strategic location for renewable energy, especially with wind and solar energy, which will enable the joint venture to convert renewable energy into green hydrogen with new technology for the first time. This project benefits not only NEOM but the whole world, as its green energy products will be exported everywhere.
This joint venture will produce 650 tons per day of carbon-free hydrogen and 1.2 million tons of green ammonia per year, reducing carbon dioxide emissions by the equivalent of 3 million tons per year.
Another major win in the Kingdom was the awarding of a contract from The Red Sea Development Company (TRSDC) to design, build, operate and transfer the Red Sea Projects utilities infrastructure, one of the Kingdoms flagship new tourism projects
This will be the regions first tourism destination powered solely by renewable energy. The contract includes the provision of renewable power, drinking water, wastewater treatment, solid waste management and district cooling for the 16 hotels, international airport and infrastructure that make up Phase 1 of the Red Sea Project.
Being in a capital-intensive business (such as) power generation and water, it is part of our business model to continuously evaluate the funding options that are available to us, Nanda said. We have established our connections with the debt capital markets. We have put ACWA Power in front of these high-quality investors and that chain of relationship is now established.
While Nanda would not give any further details on ACWA Powers long delayed IPO, the Capital Market Authority last week gave the green light for the listing of an 11.1 percent stake. The approval remains in place for six months, but chairman Abunayyan said in November he expected the IPO to happen by the end of 2021.
CHENNAI:Indian tycoon Mukesh Ambanis $10 billion entry into renewable energy could drive solar tariffs further to the ground and ignite bidding wars with fellow billionaire Gautam Adani, industry analysts say. Indias two richest men are vying to be at the forefront of Prime Minister Narendra Modis ambition to ramp up green energy capacity in the worlds second-most populous country more than fourfold to 450 gigawatts (GW) by 2030.
They have mostly avoided operating in each others space and the renewable energy push by Ambanis flagship Reliance Industries and the Adani group of companies will be the highest profile faceoff between them.
Ambani announced last month he will build 100 GW in solar energy capacity over the next nine years. He said his group would spend $10 billion over the next three years in building solar manufacturing units, a battery factory for energy storage, a fuel cell factory, and a unit to produce green hydrogen. Three days later, Adani announced that his green energy venture would add 5 GW every year this decade, from a current level of about 3.5 GW.
Analysts say there is sufficient space for multiple companies to grow as a part of Indias ambitious green energy target, but tariffs could fall further as companies try to outdo each other in aggressive bidding wars to win projects.
I would expect by 2030 that they (solar tariffs) will probably touch 1 rupee per kilowatt hour, said Tim Buckley, director of energy finance studies at the Institute of Energy Economics and Financial Analysis.
If both companies hit their targets, Reliances targeted solar capacity of 100 GW will be twice as large as Adanis, and the companies would together account for a third of all of Indias 2030 target.
RIYADH: The Saudi Arabian Investment Company (Sanabil Investments) on Wednesday announced that its parent company, the Public Investment Fund, had approved increasing its share capital by 50 percent to SR30 billion ($8 billion).
Sanabil has implemented its new strategy in 2019 to focus on venture capital, growth strategies and small buyouts, from early to more mature stages of the business life cycles, the company said in a press statement.
In February, Sanabil Investments entered into partnership with the Californian venture capital firm 500 Startups to launch an early stage accelerator program for startups in the Kingdom looking to expand across the Middle East and beyond.
The Sanabil 500 MENA Seed Accelerator Program consists of six programs run by 500 Startups over three years for a group of pre-seed and seed stage startups from across the MENA region. Up to 100 startups are expected to receive investment of up to $100,000.
From around 500 applications, 14 startups from the MENA region, including Saudi Arabia, the UAE, Egypt, Jordan, and Palestine, were chosen to present their companies to an audience of potential investors at a showcase on Wednesday.
RIYADH: Saudi employment officials have set minimum salaries for operations and maintenance roles under a broader localization push.
Senior managers working in public operations and maintenance are entitled to a minimum salary of SR9,000 ($2,399), the Ministry of Human Resources and Social Development said in a filing on Wednesday.
Pay rises according to years of experience with further details available in the Localization Guide for Operation and Maintenance Contracts in Public Entities.
The guide also sets minimum salaries for engineering and specialist levels at SR8,400, and SR7,000 for the supervisory level.
Such salary scales for different roles tie in with efforts by the government to reduce reliance on expatriates and get more Saudis into the workplace. Other Gulf states are involved in similar initiatives to boost local hiring as the regions non-oil economy gains in significance.
DUBAI: The worlds deepest swimming pool has opened in Dubai, featuring a sunken city that includes an apartment, garage and arcade.
Deep Dive Dubai is a record-breaking 60.02 meters deep and contains 14 million liters of water, equivalent to six Olympic-sized swimming pools. Located in Dubais Nad Al Sheba area, it is also home to an advanced hyperbaric chamber and dry chambers at six and 21 meters.
Public bookings are expected to begin in late July, with a variety of courses and experiences offered for scuba divers and free divers from beginners upwards.
Deep Dive Dubai is also an underwater film studio with editing room, a video wall, 56 underwater cameras and the ability to create different moods with 164 lights positioned throughout the pool.