This Metal Mining model is used to provide a forecast and valuation of a metal mining project. This has 3 pricing scenarios for gold and silver metals. Included in the template you will find:
• An Assumptions Section specific to metal mining like production schedule, reserves, mill capacity, and royalties
• A Mining Section with a mining and milling schedule
• Financial Statement Section with the Profit & Loss of the mining operation and Asset Level Balance Sheet items
• DCF Valuation of the asset with IRR, NPV, and Payback Period
• Sensitivity Analysis of IRR and NPV, and Charts/Graphs for Cash Flow, Payback and Gold Production
The model starts with an Assumptions Section where you can enter information specific to metal mining. The pricing scenarios can be adjusted using the drop-down menu in cell F24. There are sections for conversion rates, production schedule, reserves & resources, mill capacity, royalties, payability for each metal, and associated costs for the project.
Below the assumptions, the Mining Section breaks down the mining and milling schedule where the ore milled is stripped down and the gold/silver metals are recovered based on the assumptions above. After that, the Financials Section forecasts the revenue and costs associated with the mining operation. This also contains the asset level balance sheet items to consider.
The DCF Model takes the financials from above to calculate the Free Cash Flow, Asset and Transaction level NPVs, and IRRS along with the Payback on the operation. The model contains two Sensitivity Analysis tables for IRR and NPV. For visualization, there are graphs to display cash flows over the valuation period, payback period, and gold production.
All cells in blue font are input cells where custom information can be entered. All cells in black font are formulas set to streamline the model. Sections are grouped to condense the model to view sections individually.