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Rock Crusher Analysis April 2007

 

 

 

Analysis of Crushed Stone Production for Roadways to and within Existing Properties

 

 

 

Average cost for one cubic yard of crushed stone delivered without 5% sales tax in large truck

$12.00

Estimated new cost to purchase and deliver a "Jaw Crusher" for Crushed Stone production

$60,000

Value of crusher machine at the end of 5 years

$30,000

 

 

Analysis of Costs to "Self-Produce" Crushed Stone for Roadways

 

 

 

Cost to produce one cubic yard including labor, energy, maintenance and on site raw materials

$1.75

Cost of loading/transporting per yard using a contracted truck "on site"

$2.00

Total cost per yard to produce, load and truck

$3.75

Potential saving per yard (without 5% sales tax)

$8.25

 

 

Cubic Yards per lineal foot for a 20 foot wide road with 3 inches depth (quality road)

0.17

Lineal feet of roadway

1.00

Width of roadway in feet

18.00

Depth of crushed stone in feet

0.25

Cubic feet of crushed stone required per lineal foot of roadway

4.50

Cubic yards of crushed stone required per lineal foot of roadway

0.17

 

 

Estimated total length of roadways required per hectare including "access" roads (in meters)

175

Approximate number of hectares presently owned

850

Possible total roadway length required to service existing properties (in meters)

148750

Total roadway length required for existing properties (in feet)

489635

 

 

Cubic yards of crushed stone needed for surfacing roadways in existing properties

81606

Weeks per year for planning and construction purposes

50

Estimated number of years for machine ownership

5

Number of weeks for planning period with one "rock crusher" machine

250

Yards of crushed stone production needed per week over the 5 year period for existing properties

326

Yards of crushed stone per truckload using medium sized truck

10

Number of loads of crushed stone required for delivery to sites per week

33

Number of loads of crushed stone required for delivery to sites per day (one per hour)

7

 

 

Cost of crushed stone at regular retail prices delivered to site with 5% sales tax

$1,028,234

 

 

Cost of crushed stone if "self-produced" and delivered to sites by contract truckers (no taxes)

$306,022

Total estimated savings in constant dollars over 5 year life of machine

$722,212

Annual estimated savings over 5 year planning period

$144,442

Estimated payback period for "rock crusher" machine as % of a year

20.06%

Estimated payback period for "rock crusher" machine in months

2

 

 

Advantages of Self-Producing Crushed Stone

 

High net savings per annum for road building purposes providing competitive advantage

 

Long term price protection against material cost increases as Canal Project starts up

 

Potential profit center for any excess production of crushed stone from crusher machine

 

Use of "free raw materials" as existing properties are enhanced

 

 

 

 


Property Occupation, Signage, Fencing and Cleanup

Property “occupation” is an important concept in Panamanian law. Every development property had an “occupation program” which ranged from someone actually living on the property, to workers showing up on a daily basis to clean the land, to grazing cattle.

Each property also has a large sign indicating ownership including with a telephone number for private or public enquiry purposes.

Each property currently has a customized “clean-up” and/or “clearing” program as required. Some properties appear to need minimum work in either of these categories. Others need substantial efforts and as a consequence may not be great candidates for early development.

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