Operating Expenditure (OpEx)

The recurring cost of running the mine once it is built, usually quoted per tonne or per ounce.

Definition

The ongoing costs to operate a mine, including labor, energy, consumables, and maintenance. OpEx is typically expressed per tonne of ore processed or per ounce of metal produced and directly affects mine profitability.

Why it matters

Opex determines whether a mine survives a downturn. High-capex, low-opex projects endure weak prices; the reverse gets shut in.

See also

  • Capital Expenditure (CapEx) — The upfront costs required to build a mine, including equipment, infrastructure, and construction. CapEx is di…
  • All-in Sustaining Cost (AISC) — A comprehensive measure of the total cost to produce an ounce of gold, including mining, processing, administr…
  • Stripping Ratio — The ratio of waste rock that must be removed to extract one tonne of ore in open-pit mining. Lower stripping r…

More finance terms

Accredited InvestorAll-in Sustaining Cost (AISC)Capital Expenditure (CapEx)Flow-Through SharesInternal Rate of Return (IRR)Junior Mining CompanyNet Present Value (NPV)Payback PeriodPrecious Metals BasketPrivate PlacementRetail InvestorSilver Streaming Agreement
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