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How do you value the minerals you mine?
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Miranda Ctan
Radex Solutions
#1 - 2012-11-01 15:17:13 UTC
As we all know, minerals you mine are not "free" as many players seem to think. Time is money, and the time I spend mining does in fact have value.

But, how do I determine the value of my time? Do I look at current market prices for what I'm mining and say, "well, my ore is worth this and I mine X of it per hour, therefore I make Y isk/hr" or do you determine a desired isk/hr and sell your ore/minerals at a value that would reach that goal?

Or do you use an entirely different method to determine the value of your time, and by extension, ore? I'm just getting into mining and industry, so I'd like to get these kind of things figured out before I realize that I've actually been slowly losing money selling things under-value.

Any and all tips/advice appreciated. Thanks.
Iosue
League of Gentlemen
The Initiative.
#2 - 2012-11-01 15:25:30 UTC  |  Edited by: Iosue
i typically use the highest buy order that i can reasonably sell at. this excludes high prices for low volume orders and out of reach places (much of 0.0). the goal being to obtain a price that i could sell at if i wanted to liquidate those holdings right now.
Dave Stark
#3 - 2012-11-01 15:25:30 UTC
my minerals are worth 0.01 isk less than the lowest sell order in jita 4-4.

sure i could probably make more isk doing other things, however no other method of making isk lets me do as much stuff out of eve while earning said isk.
Bugsy VanHalen
Society of lost Souls
#4 - 2012-11-01 15:44:48 UTC
Generally when a miner decides to get into manufacturing they already have a routine as to where and for how much they sell the minerals they mine. I would recommend using that info as that is what you would have sold them for if you were not using them.

Any other price would slue your numbers with potential trade profits. personally I use Jita sell prices as it gives me a worst case baseline to work from. If it is profitable to make at those prices than any thing I do to get minerals cheaper just adds to profits. Although those added profits are actually mining or trade profits not manufacturing profits. It all goes into the same pocket.
Vincent Athena
Photosynth
#5 - 2012-11-01 16:39:13 UTC
I mine and use what I mine for industry. I use the high buy at the system where I manufacture for two reasons.

First, when I just mined without manufacturing, I would sell immediately, which meant I got the price of the high buy.

Second, if I was doing just manufacturing, I'd be setting my own buy orders at my station. And again the cost basis would be the local high buy.

Sometimes I do a sanity check by looking at the low sell at my local trade hub.

The result is I make 30% to 50% on average over what I would make if I just mined and sold.

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Krixtal Icefluxor
INLAND EMPIRE Galactic
#6 - 2012-11-01 17:10:48 UTC
I mine what I need. If I'm making Noctii, I mine Pyrox for the Nocx (or store it up when I find a grav site with Low Sec Ores).

Otherwise I just mine the current highest ISK/m3 Ore (currently Scordite) and sell directly, always at higher than Jita prices. Usually in Rens.

"He has mounted his hind-legs, and blown crass vapidities through the bowel of his neck."  - Ambrose Bierce on Oscar Wilde's Lecture in San Francisco 1882
CataCourier
Gordon Industries
#7 - 2012-11-01 18:02:14 UTC
If you're mining simply to convert minerals into isk, then do as I do and mine the following:

Ark->Hedbergite->Hemorphite->Jaspet->Scord->Plagio->Bistot->Kern

Or if you're only in hisec, everything except omber. :)
Riyal
invidious Squid
#8 - 2012-11-01 21:03:43 UTC
For manufacturing its best to use the lowest sell price, otherwise you will be selling the finished product for less that you could have just sold the minerals for.

I don't mine but I base a products profitability this way, even though I use buy order for purchase minerals. This way the buy order - sell order difference on the minerals is a bonus and I'm not putting a lot of effort into making less isk than flipping minerals on the market.

In hindsight my post should have had more psssshhhh
Herr Hammer Draken
#9 - 2012-11-02 05:56:20 UTC
Miranda Ctan wrote:
As we all know, minerals you mine are not "free" as many players seem to think. Time is money, and the time I spend mining does in fact have value.

But, how do I determine the value of my time? Do I look at current market prices for what I'm mining and say, "well, my ore is worth this and I mine X of it per hour, therefore I make Y isk/hr" or do you determine a desired isk/hr and sell your ore/minerals at a value that would reach that goal?

Or do you use an entirely different method to determine the value of your time, and by extension, ore? I'm just getting into mining and industry, so I'd like to get these kind of things figured out before I realize that I've actually been slowly losing money selling things under-value.

Any and all tips/advice appreciated. Thanks.


As you are just getting into industry this is what players do. If you make an item and list it for sale at a price that is lower than what the reprocessed value of the minerals is then other industrialists will be buying up your stock rather quickly and repo all of it into minerals for their own use. IE. If they can get their minerals cheaper by reprocessing your stuff than buying the minerals off the open market then they will buy up your stuff. And they tend to do this if they are in competition with you for that same product.

The markup then is normally about 10% above the reprocessed value. Stiff competition will be less than 10% and no competition will be higher than that 10% markup.

Herr Hammer Draken "The Amarr Prophet"
Abdiel Kavash
Deep Core Mining Inc.
Caldari State
#10 - 2012-11-02 09:41:05 UTC  |  Edited by: Abdiel Kavash
Treat mining and manufacturing as two completely separate activities. Mine whatever happens to be the most profitable at wherever you're selling. Keep as much of it as you need for manufacturing, sell the rest. Buy all the other minerals. Maximize both mining profit and manufacturing profit, without regards for how they tie into each other.

(Exception possibly being if you are in an area where logistics and procurement of minerals is not trivial, e.g. deep nullsec. Question is though why would you want to do manufacturing for profit there.)
Musashi Date
#11 - 2012-11-02 09:53:47 UTC
My suggestion is to move beyond just ore, and get into minerals because right now there's a 6~11% difference between PERFECT mineral refine against raw ore sell (or at least in my region).