Cost-Volume-Profit Anaysis (CVPA) pada Pertambangan Bijih Tembaga dan Emas PT XYZ

Abstract

The management of mineral resources in the mining industry in Indonesia has its own challenges. The challenge and effort is not only in the exploration and exploitation activities but specifically how to manage it in a sustainable manner and provide added value to fullfill the needs of national development. PT XYZ is one of the copper and gold mining industry entity which has been now operating in the Eastern region of Indonesia. This entity applied two mining systems including: (a) open pit mining (tamka) and (b) underground mining (tambata). One of the constraint of PT XYZ was when this entity is need to manage the production in the transition period from open pit to underground mines. How the impact of this condition can be described scientifically is a matter that requires comprehensive study because production constraints have an impact on many things. The CVPA research at PT XYZ is a study to confirm challenges from managerial aspects related to financial decision making, production control and profit orientation. The production crisis requires a managerial implications. This implication can provide solutions that focus on determining how much and how the level of production, costs and profit orientation which needed in the business process. The research data at PT XYZ, focused and limited to factual conditions from 2018-2022. Based on research data, several things can be confirmed: (a) total mined ore production is estimated to 261.64 Mt or equivalent to 52.33 Mt per year. 28% of the total production delivered from open pit or equivalent of 73.77 Mt and 72% from the underground mines or equals for 187.88 Mt, (b) the amount of concentrate production shipment is projected to be 11.12 Mdmt or equivalent to 2.22 Mdmt per year, (c) payable copper is projected at 5.91 billion lbs; while the payable gold is 7.91 Mozs, (d) total average operating costs started 2018 to 2022 are estimated about $263.75 million per month at a production cost per unit of $63.92/t, (e) average copper price tabulated about $3.3/lb, average price of gold $1,606/oz, (f) the testing result of Z-bench for the capability of (i) production (ROM) is 2.59, (ii) production of concentrate is 2.84, (iii) total operating cost is 2.83, (iv) unit cost of production is 2.58. Most of the “Six-Sigma” Z-bench are less than 3. It means all process required immediate corrective action and management control of PT XYZ, (g) estimated sales of copper about 5.50 billion lbs and gold 7.44 Mozs, (h) projected total operating costs: (i) total cost estimated at $15.82 billion or $3,16 billion per year, (ii) fixed costs $9,09 billion or $1.82 bilion per year, (iii) variable costs $6.73 billion or $1.35 billion per year, (h) estimated turnover of $30.89 billion or equivalent with an average of $7.89 billion per year, (i) projected CM $21.85 billion or $4.71 billion per year, (j) projected DSC 0.48 or 0.38 per year, (k) Cf projected about 0.71 or annual average about 0.70 per year, (l) projected SI or MOS is $14.96 billion or $2.98 billion average per year, (m) average of DOI about 0.62, (n) average of the gross profit estimated to growth for 0.66, (o) this study also confirms the results of correlation testing of two or more variables: the results of the correlation test of two or more variables: (i) the influence or relationship of production on costs is 77.07% in a positive direction, (ii) the influence of FC on total operating costs is 83.53% in a positive direction, (iii) the influence of variables costs: labor (X_1), work contracts (X_2), materials and supplies (X_3), power (X_4), and D&A(X_5), is 96.81% with a positive direction, (iv) the selling price of copper correation on sales is 47% in the opposite direction (negative); this means that the effect of variable X is not in the same direction as Y so that if the price of copper rises, it is not certain that income will increase