PRELIMINARY FEASIBILITY STUDIES

   MSRDI performs several preliminary feasibility studies for its clients each year. Such studies analyze which components of cost and revenues have the greatest impact on project economics, and/or offer the most potential improvement through further study and/or present the greatest exposure to various risks. Design basis and flowsheet include: tons of material to be processed per day for a period of time; process conditions; physical and metallurgical characteristics of the material to be processed; information about the proposed plant site; and other costs such as labor, materials of construction, utilities and transport costs; environmental assessments and worker safety and plant operation safety.

   Equipment list includes the size of each unit, horsepower, material of construction, etc. Capital cost estimates include quotations including installation costs via equipment vendors, published literature and net present value of money. Plant operating costs are primarily comprised of labor, utilities, fuel, consumables and general overhead. Maintenance supplies, operating supplies, local taxes and insurance are taken as percentages of fixed capital. Revenues are estimated taking the product’s production rates and selling prices, less shipping and handling costs. Total capital and operating costs and revenues are plotted on a time-scale corresponding to the project schedule. A discounted-cashflow rate of return, a net present value, or other desired estimates of project profitability are calculated. Multiple flow rate of return, a net present value, or other desired estimates of project profitability are calculated. Multiple simulation models are run as well in order to determine economic sensitivity.