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.
gold mining business plan sample template
Gold mining is not only capital intensive but requires a thorough planning process to be successful. If you are reading this, chances are that you are looking for help on how to put together a good plan for your gold business.
The value of gold keeps rising even while faced with an economic crisis. Many individuals and companies are interested in starting their own gold mining business because of its continued popularity. This is more eminent in countries where there is gold to mine.
Businessmen and women are urged to start a gold mining business because it is much cheaper to produce, and they will gain more money once theyve sold it. Some find it easier investing in quarry business.
So, if you want to have your own gold mining company, you need to do your researches appropriately. Gold prospectors who want to start a gold mine have choices to make when beginning to create a mining operation.
Gold mining operations range from tiny to gigantic. Definitely, the location and size of the operation will determine how a miner will start a gold mine. All these must be captured in even a small-scale gold mining business proposal.
You must record the concentrations of naturally occurring gold in the gold ore on the claim. You are to dig where exposed bedrock is on the claim and where waterways collect gold in the beds of the river or stream around the inside bend of a corner in the water.
2. You are to set up mining equipment that compliments the geography of the area. Though water is an important feature of many gold mines, some experts said it is not needed for separating the gold from the ore. Necessary things as sluice boxes and shakers can run by either water or air. You just develop the right mine for your site.
4. Excavate gold ore from the most productive sampling sites on the claim and collect the ore near the mining equipment. When enough ore has been stored to run a complete shift of mining operations you can begin to separate the gold from the ore and make money with a gold mine.
In conclusion, you should note that you might take some pounding from stronger competitors. In fact, you might make a business mistake or even face intricate gold business challenges like a change in government policy.
You should also not complicate the whole process. The simpler it is, the better. However, an essential requirement is a knowledge about gold mining. This information will be needed in putting your plan together.
The discovery of an additional gold reserve outfield has necessitated the expansion of our operations to cover this new location. This expansion will require sourcing the needed funding to cover these operations.
With the discovery of more gold deposits, our vision is to break into the major league of gold mining within the next 5 years. The expansion of our operations will help us achieve our target within this specified period.
An analysis of our state of health as a business has been done by a reputable business consultancy firm. Our performance has been measured against vital indices which have brought important facts to light;
Our gold mine business has experienced considerable patronage over the years. We have built a strong team of professionals consisting of geological and metallurgical experts in addition to engineers among many others.
We are a growing gold mining business with formidable competitors. The industry is pretty much dominated by these major players. Although there are regulations in place to check against monopolizing the gold mining sector, an increasing number of businesses like ours are underfunded to compete effectively.
The discovery of an additional gold deposit has enhanced our chances and market share. Our expansion drive seeks to take advantage of this discovery. We will commence exploration as soon as mining equipment is bought and installed.
Threats to our business come in the form of multiple taxations and unfavorable government policies. The impact the latter has on our gold mining business is enormous. This can make it more difficult to do business.
With an expansion of our gold mining operations, our profits are expected to witness a jump. We have a projected growth in sales that is expected to rise considerably over the next three years as shown in this chart;
This is made up of experts with many years of experience in the gold mining industry. We have been careful to select only the best as we believe that this will reflect in our operations. The discovery of an additional gold mine and obtaining the operating license has further added to our reserves.
We already have a network of existing clients who have proven to be valuable assets to our operations. These will be crucial to the take-off and smooth running of our new gold mine. Through the expansion of our current capacity, we will work with more major gold merchants to create a distribution channel for our products.
The extraction/mining of gold from our reserves is expected to last a period of 3 decades. During this time, more explorations will be carried out in addition to gold processing which we will be embarking on within 2 years. These will enhance our sustainability and make our gold mining business a stable and highly profitable venture.