Mining Bundle Financial Models

The Mining Financial Model Bundle includes the following templates:

• Gold Mining Financial Model
• Copper Mining Financial Model
• Lithium Mining Financial Model

Model Assumptions for each Model:

Mining, Revenue & Direct Costs Assumptions

Starts with basic model questions on the start date of the model, tax rate assumption, mine life, and revenue generation start date.

Revenue assumptions are the anticipated factors that drive a company’s income generation over a specific period. These assumptions form the basis for financial projections and are crucial for planning and decision-making. In our model, we have included detailed inputs on Annual Ore Production (tons), Strip Ratio (Waste to Ore Ratio), Grade (grams/ton), Mill Recovery Rate (%), Total Ore Extracted (without waste), Total Grams of Metal in Ore, Total Ounces of Metal Produced, Total Tons of Metal Extracted, Metal Price Per Ounce.

Direct Costs of a Mine are related to the extraction of Nickel from the ore deposit. We have included assumptions on the Mining Cost Per Ton of Ore, Milling Cost Per Ton Of Ore, and Other Costs Per Ton Of Ore (which contains all other production/extraction-related costs).

Operating Expenses Assumptions

Operating expense assumptions are typically based on historical data, industry benchmarks, market trends, and management’s judgment. They are crucial for estimating the business’s total cost and determining profitability. Like revenue assumptions, it’s essential to regularly review and adjust operating expense assumptions to reflect changes in the business environment and ensure the accuracy of financial forecasts. In our model, we have included detailed inputs on Mining Staff Costs (Executive Team (CEO, COO, CFO, CTO), Operations Team (Mine Manager, Production Manager, Maintenance Manager, Health/Safety/Environment Manager), Technical & Engineering Team (Senior Mining Engineer, Geologist, Metallurgist, Surveyor), Finance & Administration Team (Financial Controller, Accountant, HR Manager, Administrative Assistant) and Other Staff relevant to the operations. We have also included Expense items, including Equipment Maintenance, Fuel and Energy Costs, Consumables and Suppliers, Transportation and Logistics, Insurance, Environmental Management Costs, Security, Office Expenses, and other costs.

Funding and Other Assumptions

Capital expenditure (Capex) assumptions refer to the anticipated investments a company plans to make in long-term assets, such as property, plant, equipment, and technology, over a specific period. These assumptions are crucial for financial planning, budgeting, and forecasting, impacting the company’s cash flow, profitability, and growth prospects. We have included Initial cost assumptions for the main items likely to be on a company’s capex sheet (land acquisition, permitting and licensing costs capitalized, exploration and feasibility studies costs, mine development, equipment purchase, infrastructure development, processing plant construction, and other related expenses). A Use Of Funds assumption list with a corresponding bar chart included.

Monthly Projections (10-year period)

We have broken down projections Month-by-month when projecting income statements, balance sheets, and cash flow statements. The monthly forecasts are provided over a 10-year time frame. This is particularly useful for businesses looking at month-on-month trends and insights in the industry, which leads to better decision-making and budgeting should there be a need to either raise more capital, pursue growth opportunities from excess capital or pay down interest-bearing debt. Monthly projections also help a business ascertain seasonal performance when looking at growth projections on a month-over-previous-years-month basis.

Annual Projections (10-year period)

The model has Annualized Financial Projections of Income Statement, Balance Sheet, and Cash Flow Statement over a 10-year time frame. Annual projections provide an excellent overview of expected revenues, expenses, profits, cash flow, and other key financial metrics for the upcoming year. Yearly predictions are essential for any company’s strategic planning, budgeting, fundraising, and performance evaluation at any stage of its business cycle.

Mining Metrics & Ratios

They are mining-specific metrics (Annual Ore Production, Strip Ratio (Waste to Ore Ratio), Nickel Grade (grams/ton), Mill Recovery Rate %, Price Per Ounce, Mining Costs Per Ton, Milling Costs Per Ton), Profitability Metrics, Liquidity Ratios provided.

Summary of Financial Statements (10-year period)

Summarized Financial Statements over a 10-year time frame help for better snapshots of financial performance. Income Statement, Balance Sheet, and Cash Flow Statement are all provided.

Charts

Specific Charts available, including Ore vs. Mining Product Extracted, Mining Sales vs. Direct Costs, flow summary, and Profitability Analysis.

DCF Valuation

We have included a Discounted Cash Flow (DCF) Valuation model showing the Business’s Net Present Value (NPV) based on a series of growth rates and assumptions. Weighted Average Cost of Capital Assumptions is also provided, including Risk-Free rate, Beta, Risk Premium, and Equity Risk Premium. A DCF valuation is a method used to estimate the value of an investment, business, or asset by discounting its expected future cash flows to present value. It is based on the principle that the value of an investment is determined by the present value of its future cash flows. The DCF valuation technique is widely used in finance, investment analysis, and corporate finance for making investment decisions, determining the fair value of securities, and evaluating the worth of businesses.

Depreciation Schedule

The detailed depreciation schedule shows additions/disposals to the business’ fixed asset register. Sections included Land, Buildings, Equipment, and Others.

Debt Schedule

Debt schedule provided with interest rate assumptions and payback period assumptions included.

Equity Schedule

Equity schedule provided with assumptions on all investments into the business by investors or owners.