www.thecementgrindingoffice.com
All rights reserved © 2012-2015 The Cement Grinding Office
  Mill Circuit Modification IRR and Payback Calculator (For production increase target)        
  (Modification of the circuit: pre-grinding, separator...etc)                    
                         
    Date                  
    Company/Plant       Mill Automation System  
    Mill N°             Filter system  
                    Mill Alimentation System
  1 Data before modification(s):               Others    
    Mill absorbed Power (1) kW                
    (1) At terminals                    
    All auxiliaries absorbed power (2) kW                
    (2) Pre-grinding system, weighfeeders, bucket elevator, separator, fans...etc                    
                    No    
    Annual operating hours h           Modification of the existing system
    Operating percentage %           Roller-Press in Open Circuit
                    Roller-Press in Closed circuit
    Type of cements produced               Vertical Shaft Impacter in Open Circuit
    Name          
    % of the total production %        
    Output t/h   No    
    Specific power consumption (mill only) kWh/t   From Open to Close Circuit
    Total specific power consumption kWh/t   Replacement of the separator
    Annual production in tons t          
                    No    
  2 Kind of modifications:               Yes    
    Pre-grinding system
           
    Separator
             
    Other modifications
             
    Mill's internals
                 
www.thecementgrindingoffice.com
  3 Cost of the investment (3):                    
    (3) All the prices herebelow are in US dollars                    
    Material (4):                    
    (4) All the prices are total prices in order to simplify the calculator                    
    Pre-grinding system US$                
    Separator US$                
    Other modifications US$                
    Mill's internals US$                
                         
    Total material US$                
                         
    Cost of manpower - erection (5):                    
    (5) All the prices are total prices in order to simplify the calculator                    
    Pre-grinding system US$                
    Separator US$                
    Other modifications US$                
    Mill's internals US$                
                         
    Total manpower US$                
                         
    Training staff costs: US$                
                         
    Total cost of the investment: US$                
                         
    Mill downtime:                    
    Number of days out of service days                
    Number of operating hours lost hours                
                         
  4 Cost of the charges of the investment (6,7):                    
    (6) On a yearly basis                    
    (7) Difference between before and after if replacement of material                    
    Pre-grinding system spare parts US$                
    Separator spare parts US$                
    Other modifications spare parts US$                
    Pre-grinding system manpower maintenance US$                
    Separator manpower maintenance US$                
    Other modifications manpower maintenance US$                
                         
    Total cost of charges                  
                         
    Additional downtime scheduled due to new equipment  days                
      hours                
www.thecementgrindingoffice.com
  5 Expected improvement with the modification for production increase target                
    Production increase in %   %              
    Mill absorbed power increase in %   %              
    Auxiliaries power increase in %   %              
    New auxiliaries absorbed power (8)   kW              
    (8) Only in case of addition of a pre-grinding circuit and/or addition of a separator if open circuit                
    Annual operating hours increase in % (9)   %              
    (9) In the case where the modification results in a more reliable installation                    
                         
  6 Expected production data after modification(s) for a production increase target:                
    Mill absorbed Power (10) kW                
    (10) At terminals                    
    All auxiliaries absorbed power (11) kW                
    (11) Pre-grinding system, weighfeeders, bucket elevator, separator, fans...etc                    
                         
    Annual operating hours h                
    Operating percentage %                
                         
    Type of cements produced                    
    Name          
    % of the total production %        
    New output t/h        
    Specific power consumption (mill only) kWh/t        
    Total specific power consumption kWh/t        
    New annual production in tons t          
www.thecementgrindingoffice.com
  7 IRR and Payback calculations for a production increase target:                    
    Price of the electrical power (12) US cents/kWh              
    (12) The price hereabove is an average price in order to simplify the calculation                    
    Energy costs:                    
    Before modification US$                
    After modification US$                
                         
    Gain of energy during downtime (13) US$                
    (13) The installation didn't operate during modification                    
                         
    Cement production benefit:                    
    Type of cement          
                         
    Before modification:                    
    Gross margin by ton of cement US$        
    Yearly gross margin by type of cement US$        
                         
    Total yearly gross margin US$                
                         
    During modification:                    
    Gross margin by ton of cement US$        
    Lost of production due to downtime US$        
                         
    Total lost of production due to downtime US$                
                         
    After modification:                    
    Gross margin by ton of cement US$        
    Yearly gross margin by type of cement US$        
                         
    Total yearly gross margin US$                
                         
    Depreciation of the material (14,15)                    
    (14) Mill's internals are not taken into account for simplification reason                    
    (15) Based on the declining balance depreciation method                    
    Cost of the investment US$                
    Month of commissioning (16)                  
    (16) January = 1, February = 2, March = 3...etc                    
    Year of commissioning (17)                  
    (17) like: 2013                    
    Expected lifetime (18)                  
    (18) Valid from 1 year to 20 years                    
    Residual value US$                
    Amount to be amortized US$                
    2 degressive depreciation rates are available:                    
    Degressive depreciation rate 1 %                
    With the following formula:    
       
    Degressive depreciation rate 2                
    With the following formula:    
         
    Choose rate 1 or 2?
        1        
              2        
    Year Basis Annuity (19) Cumulated annuity Value            
      français
      an taux
      1 rien
      2 1,25
      3 1,25
      4 1,25
      5 1,75
      6 1,75
      7 2,25
      8 2,25
      9 2,25
      10 2,25
         
         
         
         
         
         
         
         
    (19) If the degressive depreciation rate is lower than the straight line depreciation rate,                  
    then, you must take into account the SL depreciation rate.                    
www.thecementgrindingoffice.com
    Income taxes percentage (20) %                
    (20) As it depends from country to country, choose the tax that is closest to your case                  
    Discounted rate (21) %                
    (21) Cash flows used in the calculation are discounted by the weighted average cost of capital used as the interest rate and the year            
     in which the cash flow is received.                    
                         
    Results 0
    Year
    Investment (amount to be amortized) 0 0 0 0 0 0 0 0 0
    Gain in energy due to new equipment erection 0 0 0 0 0 0 0 0 0
    Lost in cement production due to new equipment production 0 0 0 0 0 0 0 0 0
    Yearly earnings with cement production
    Gains or losses with annual electric power
    Maintenance expenses (spare parts + manpower)
    Depreciation
    Gross result
    Income taxes
    Net result
    Depreciation (cancellation)
    Net cash flow
    Discounted cash flow
    Net present value
    Internal rate of return  
    Year
    Investment (amount to be amortized) 0 0 0 0 0 0 0 0 0 0
    Gain in energy due to new equipment erection 0 0 0 0 0 0 0 0 0 0
    Lost in cement production due to new equipment production 0 0 0 0 0 0 0 0 0 0
    Yearly earnings with cement production
    Gains or losses with annual electric power
    Maintenance expenses (spare parts + manpower)
    Depreciation
    Gross result
    Income taxes
    Depreciation (cancellation)
    Net result
    Net cash flow
    Discounted cash flow
    Net present value
    Internal rate of return
                         
    Payback Period Years or  months          
www.thecementgrindingoffice.com
All rights reserved © 2012-2015 The Cement Grinding Office