How Do You Start a Quarry? Quarry Valuation and Profitability

To value a quarry, estimate future cash flows and discount to the present. Factors include: amount of extractable stone, selling price, extraction/selling costs, quarry life, and discount rate. Also consider cash flow risk, affecting the discount rate.

Stone Pricing and Costs

  • Installation of quarry stone pavers costs $2,187 on average by ZIP code.
  • Identify rock type using vinegar which fizzes on limestone.
  • Bid tabulation shows crushed stone/gravel costs of $4.00-$5.00 per ton. Road base is $18-$30 per ton. Pea gravel or limestone is $28-$45 per ton. Buying small loads costs over $100 per ton. 1.4 tons fills 1 cubic yard.

Equipment Costs and Quarry Operations

  • A diamond wire saw costs $40,000-$100,000. A hydraulic granite splitter/cutter costs $4,000-$20,000. An Ohio stone operation started with $250,000 for equipment.
  • Gather 4000 quarried stones quickly, enough for three manors. After depleting a quarry, wait one month for replenishment. A convenient quarry is by Lakeview Manor, with a pickaxe nearby. PC console commands also add stones.

Regional Impact on Costs and Profitability

Driveway rock installation costs depend on region. Quarry business rent varies greatly. A Manhattan lease could be over $80,000/month. A Florida/Tennessee lease could be under $1,000/month.

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