Financial Modeling For Mining Projects

What is Financial Modeling For Mining Projects?

Mining projects require a unique type of financial modelingWhat is Financial ModelingFinancial modeling is performed in Excel to forecast a company's financial performance. Overview of what is financial modeling, how & why to build a model. A 3 statement model links income statement, balance sheet, and cash flow statement. More advanced types of financial models are built for valuation, plannnig, and as they contain extensive geological and engineering information. To build such a model, an analyst needs to gain access to a technical reportMining Asset Valuation TechniquesThe main mining valuation methods in the industry include price to net asset value P/NAV, price to cash flow P/CF, total acquisition cost TAC & EV/Resources. The best way to value a mining asset or company is to build a discounted cash flow (DCF) model that takes into account a mine plan produced in a technical report (such as an NI 43-101, feasibility study, or preliminary economic assessment), and model out the mining and milling schedules based on those reports. The more “early stage” a project is, the harder it is to build a modelTypes of Financial ModelsThe most common types of financial models include: 3 statement model, DCF model, M&A model, LBO model, budget model. Discover the top 10 types of Excel models in this detailed guide, including images and examples of each. Financial modeling is performed for many reasons including to value a business, raise money for it.

Additional Questions and Answers

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In order to become a great financial analyst, below are some additional questions and answersKnowledgeCFI self-study guides are a great way to improve technical knowledge of finance, accounting, financial modeling, valuation, trading, economics, and other areas. These resources give you the technical skills you need to advance your career in investment banking, equity research, corporate development, and other areas of for you to explore further:

What is are the types of financial models?Types of Financial ModelsThe most common types of financial models include: 3 statement model, DCF model, M&A model, LBO model, budget model. Discover the top 10 types of Excel models in this detailed guide, including images and examples of each. Financial modeling is performed for many reasons including to value a business, raise money
What is sensitivity analysis?What is Sensitivity Analysis?Sensitivity Analysis is a tool used in financial modeling to analyze how the different values for a set of independent variables affect a dependent variable
What is bookkeeping?AccountingOur Accounting guides and resources are designed as self-study guides to learn accounting and finance at your own pace. Browse hundreds of articles on important topics such as the income statement, balance sheet, cash flow statement, depreciation methods, how to link the 3 statements, debits & credits, journal entries
What are the most common valuation methods?Valuation MethodsWhen valuing a company as a going concern there are three main valuation methods used: DCF analysis, comparable companies, and precedent transactions. These methods of valuation are used in investment banking, equity research, private equity, corporate development, mergers & acquisitions, leveraged buyouts and finance

Example Excel Model

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Financial Modeling For Mining Projects

What is Financial Modeling For Mining Projects?

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Example Excel Model

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