-Economic Analysis. Grade and values of the deposit are:^ 



Procurement and operating costs are shown in Table 5 , which contains a number of assumptions 

 because of lack of factual information. In each case, the assumptions are based on sound engineering 

 judgment and experience, but it is stressed that considerable detailed engineering study would be 

 required to confirm any of the estimates made and the estimates should be accepted only with this 

 reservation. 



—Development Capital. In allowing for development capital it is assumed that major development has 

 been undertaken under other auspices for the floating platform, the support submersible, and the 

 control habitat. 



Table 6 

 PROFITABILITY ANALYSIS' 



1. Sales 



Ni/Cu/Co/Mn content 



1.5 million tons @ $49.77 $74,655,000 



2. Expenses 



Administrative (10 per cent sales) 7,466,000 



Royalties (5 per cent sales) 3,733,000 



Operating costs 41,810,000 



(plus 1/15 development capital) 1,000,000 



^^^ 54,009,000 



3. Prof It before taxes ^MP. 20,546,000 



4. Depletion allowance (15 per cent of item 3) 3,080,000 



5. Net taxable income 17,466,000 



6. Taxes (52 per cent net taxable Income) 9,080,000 



7. Net prof it (item 3 - item 6) 11,466,000 



8. Capital 



Procurement 92,100,000 



Development 15,000,000 



Working (25 per cent operating) 10,452,000 



$117,522,000 



(item 7) 



9. Annual percent ROM = jr: g, x 100 = 9.8 percent 



Rounded to nearest $1 ,000. 



Fiom Metal Markets, January 1968. 



VII- 185 



333-092 0-69—13 



