Why Buy Ores?
When you buy ores, they will be processed as a batch. This will thus increase the value of your investment. Each ore is different, the cost of processing and value addition varies.
Below is an example based on Copper Ores refined to 99.99%
- Example:
If you buy 1 metric tonne of copper (1,000 kilograms) Copper LME price is 8.50 USD per kilogram or 8,500 USD per tonne.
If you buy the ore at 70% of LME it will be .7 times 8.50 USD which equals 5.95 USD per kilogram. So, you pay 5,950 per tonne of copper ore.
The ore is sent to the refinery to be processed into 99.99% purified copper. The cost to process is 1,000 USD per tonne. The new value will then be 95% of LME.
Your investment is now worth 8,075 USD per tonne. When you minus the 1,000 USD cost to process, you will have a net of 7,075 USD. The 7.075 minus the initial investment of 5,950 gives you a net gain of 1,125 USD, a 19% increase.
Repeated two time a year, you would make a 38% annual return. At 4 times a year, you would get a 76% annual return.
Each batch will be processed when the capacity of the refinery and the market allows.
