This financial model takes into account all the general capital costs, employee wages, and supplies required to operate an open-pit mine and sets them against possible revenue so you can see what annual cash flow/break even scenarios look like.
One of the more unique features implemented was allowing the user to enter a % breakdown of what they expect their tonne makeup to look like by ore. For example, you can enter that 40% is expected to be gravel, 40% clay, and 20% rock salt. All of the different ore types have been priced out at a value per tonne and dynamically represent themselves in annual revenue based on your assumptions. Those values can then be updated as-needed.
– Total/Net Cash Return (% and $)
– Break Even Year
You will also see visuals to let you get a more clear picture of where the costs are coming from and how the cash flow balance changes over time based on the pro-forma cash flows.
This is a great way to get a clear picture of the costs it takes to implement an open-pit mine and from there it will be useful to see what kind of revenue you need to get in order to turn a profit. All costs are dynamic and you can adjust them based on what you find in your specific scenario.
Financing option is now available. This will let the user put a % of the total startup costs financed by a loan and see how that debt service effects the cash flows/returns/IRR. You can also set all the loan paramters.
Notes and sources will be given on the full version only.
|Industry||Mining, Open Pit|
|Summary||Allow a potential miner to see visually and numerically (annual basis) what their possible financial position would look like when starting up an open-pit mining operation.|
|Screenshots / Pictures||
|Use Cases||Break-even, Financial Feasibility, Financial Projections, IRR, Pro-Forma, ROI, Sensitivity Analysis|