Operational and Capital Cost Comparison: Argentina Copper Project vs. Sherpa Estimates
Accurate mine cost estimation plays a pivotal role in early-stage project planning, and when comparing costs between projects, even small differences can have a significant impact. In this analysis, we benchmark the operational (OPEX) and capital (CAPEX) cost estimates for a PEA stage copper project in Argentina and the estimates generated using Costmine’s Sherpa platform.
The company’s estimated opex is notably lower, driven by reduced labor and administrative costs. This streamlined approach results in lower total costs compared to Sherpa’s estimates, which tend to offer a more conservative projection that accounts for broader operational overheads and variability in project conditions. Sherpa’s opex estimates, while higher, provide a safeguard against potential cost fluctuations that might arise in different operational environments.
On the capex side, Sherpa and the company are in close agreement. Both models allocate significant capital towards equipment, pre-production, engineering, and contingency costs. This alignment reinforces Sherpa’s ability to produce reliable and fast capital cost projections, on par with those used in real-world project planning at the PEA or Scoping stage. Indeed, the real-world equipment opex and capex data that underlie Sherpa’s cost estimates provide a significant advantage to users who need quick and accurate cost forecasts.
Why Sherpa?
Sherpa offers a significant advantage through its customizable inputs, allowing users to flexibly adjust cost components and test various outcomes without the need for expensive and time-consuming full studies. This flexibility ensures that cost estimates can be validated and tailored to reflect the unique challenges and cost drivers of each project.
At the core of Sherpa’s strength is its integration with the Mining Cost Service (MCS) dataset. MCS provides an extensive range of cost data, including equipment, utilities, labor, and material costs, updated annually to reflect real-time market conditions. Sourced directly from manufacturers, suppliers, and mining companies, this data ensures that users have access to the most accurate and reliable cost information in the industry. Whether planning a new project or refining an existing operation, MCS data gives users the confidence that their estimates are based on current and comprehensive data.
This integration allows Sherpa to deliver more than just flexible cost estimation; it also helps validate key assumptions across multiple components of a mining operation. Whether assessing equipment fleets, labor needs, or operational overhead, Sherpa enables users to identify potential cost challenges early, helping improve decision-making and reduce risks.
For those looking to streamline project evaluation while maintaining a high level of accuracy, Sherpa, combined with MCS’s trusted data, provides a cost-effective solution that mitigates the uncertainties inherent in mining project planning.
Learn more about Sherpa here:Â SHERPA | Costmine Intelligence
