— By following this guide, investors can take a rigorous approach including estimating resources, modeling cash flows, choosing conservative metal price assumptions and assessing value potential. The key is using these tools to identify miners trading at steep discounts to fair value.

 — Based on current prices, cash flows from operations for a majority of mining companies are expected to remain strong in the near future. This presents the industry with a conundrum: How should companies invest for growth, exert capital discipline, and avoid missteps from the past?

This guide to mining valuation will teach you all you need to know to value an asset! The best way to value a mining asset or company is to build a discounted cash flow (DCF) model that takes into account a mining plan produced in …

 — The primary valuation methodology for development properties and producing mines is discounted cash flow ( "DCF"). The underlying valuation premise is that value reflects the current net economic benefit of the net cash flows that are expected to be generated over the life of the project.

 — Examples of a Cash Flow Statement. To present a clearer picture of the two methods, there are some examples presented below. Calculated Using the Direct Cash Flow Method. An example of the cash flow statement using the direct method for a hypothetical company is shown here:

how IFRS is applied in practice by mining companies. This publication identifies the issues that are unique to the mining industry and includes a number of real life examples to demonstrate how companies are responding to the various accounting challenges along the value chain. Of course, it is not just IFRSs that are

Build financial statements based on the mine plan. Perform a discounted cash flow DCF valuation of the mining asset in Excel. Build sensitivity analysis to test for different input assumptions. Output relevant graphs and charts to illustrate the investment opportunity.

These mining financial model Excel templates will be helpful as your guide to completing your financial projections for a business plan or financial plan for a mining business. You can also use it to determine the value of the mining project and …

Learning objectives. Read a technical report / feasibility study and gather the important economic information. Run sensitivity analysis on the value of that asset. Input all assumptions into a robust and dynamic financial model. Calculate the value of …

 — Cash flow analysis is another cornerstone of financial assessment in mining. Operating cash flow, in particular, is a key indicator of a company's ability to generate sufficient cash to maintain and expand operations.