Our approach to project valuation and optimization is tailored specifically to each project and builds on a foundation of experience our team has gained working on hundreds of projects in nearly all mineral commodities, from concept to production.
We provide merger and acquisition due diligence support to potential transactions. Our independent review of the project, producing mine, or multiple mining companies gives our clients comfort they are making the right decision. We cover disciplines and project stages from exploration through mine closure, and provide an assessment of the risks and opportunities we identify in each area. We also act as Independent Engineer representing financial investment groups through the construction and completion testing phase of developing mines. Our input has helped marginal projects succeed, helping ensure the financial investment was realized.
A distinctive capability of our associates is our unique approach to project optimization. Through experience with hundreds of projects we understand mining in reality is a complicated business and true project optimization can be challenging. Our associates have developed techniques that help us optimize complex projects. We call it Multi-Scenario Economic Modelling. Seemingly simple changes, like a commodity price change have a large impact on many aspects of the project. Mines adapt to the change by redoing mine plans and cutoff grade which affect the production schedule, revenue, stripping ratio, and mine life in an effort to manage project economics. A simplistic sensitivity analysis to metal price doesn’t reflect the dynamic situation. If the mine has both open pit and underground production, separate processes for different ore types combined with potentially variable production rates from open pit and underground affect the cutoff grade, resource base, and development schedule for both the open pit and underground mine. This makes project considerably more complicated. Our approach has helped optimize several of these types of developing projects and operating mines.
Our associates also provide independent adviser services/support for several companies providing specific expertise in areas they need support. For instance an operating mine might lose its mine planner, our associates would fill that position until they find a permanent replacement. Another example may be a periodic longer-term assignment such as a minority partner in a developing mine that needs a technical review and opinion of the resource estimate each time it is updated.
Project Valuation & Optimization services include:
- Independent Project Review
- Project Due Diligence
- Independent Engineer
- Mining Economics and Finance
- Multi-Scenario Economic Modeling
- Project Optimization and Trade-off Studies
- Independent Adviser and Consultation
- Mineral Property Appraisals