Quarry Income

 

There is an existing lease of the entire acreage with an operating quarry company. The lease started in January, 2018. The following gives information calculating an approximate amount of coarse aggregate for the property.

Tons of aggregate per acre excavated 25 feet = 50,638.5

Total tons for 100 acres excavated 25 feet = 5,063,850

Conservative royalty per ton = $.30

Total royalty for 100 acres = $1,519,155.00

The following isĀ  based on the actual amounts for 2018.

Tons sold through July, 2018 = 62,197.55

Average per month = 8,885.364

Very conservative tons per month = 5000

Tons over six years = 360,000

Conservative royalty per ton = $.30

Total royalty for six years = $108,000.00