The impact of management measures on profit in mining companies

Abstract

Profit ( ) appears as a positive difference between revenues ( ), as the result of reproduction and operating costs (T), as a form of investment required to achieve these results. In the succession of period, both income and costs are changed, so it is possible to observe a change in the amount of profit. In giving the effect of income change on profit, the volume ( ) and price( ) should be specially expressed. Operating costs are another element that modify the income through changes in consumptions ( ) and price per unit of consumption ( ). In this paper the influential elements forming earnings in the mining production, specific investment elements that influence on realized production volume and size of actual consumption volume, are considered. The influence of dynamics of prices on profit in the mines was observed through the effect of sale price of metals to total amount of income and the impact of purchase price of elements of production to the amount of costs. The increasing profits at mining companies may be affected by management actions contained in the various measures eliminating the subjective weakness in a business without additional investment using the existing internal reserves.