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BENEFITS OF THIS EXCEL DOCUMENT
- This Gold Mining Financial Model Template has been built for use by any company founder or executive in the Gold Mining space, Investors or Analysts looking at researching Gold Mining businesses or Students
- Featuring specific Gold Mining metrics you can track (Annual Ore Production, Strip Ratio (Waste to Ore Ratio), Gold Grade (grams/ton), Mill Recovery Rate %, Gold Price Per Ounce, Mining Costs Per Ton, Milling Costs Per Ton and more)
- These models are designed to be the perfect financial tool for business owners to use to make decisions for their company and also to provide to investors to give a snapshot of how the business is currently performing and what the forecasts look like.
MINING INDUSTRY EXCEL DESCRIPTION
This Gold Mining Financial Model Template has been built for use by any company founder or executive in the Gold Mining space, Investors or Analysts looking at researching Gold Mining businesses or Students looking to study how a Gold Mining Business operates and the key variables underpinning it.
Featuring specific Gold Mining metrics you can track (Annual Ore Production, Strip Ratio (Waste to Ore Ratio), Gold Grade (grams/ton), Mill Recovery Rate %, Gold Price Per Ounce, Mining Costs Per Ton, Milling Costs Per Ton and more), users will easily be able to navigate the model with all input fields highlighted in Blue font. These models are designed to be the perfect financial tool for business owners to use to make decisions for their company and also to provide to investors to give a snapshot of how the business is currently performing and what the forecasts look like.
Mining, Revenue & Direct Costs Assumptions
Starts with basic model questions on start date of the model, tax rate assumption, mine life, revenue generation start date.
Revenue assumptions are the anticipated factors that drive a company's income generation over a specific period. These assumptions form the basis for financial projections and are crucial for planning and decision-making. In our model we have included detailed inputs on Annual Ore Production (tons), Strip Ratio (Waste to Ore Ratio), Gold Grade (grams/ton), Mill Recovery Rate (%), Total Ore Extracted (without waste), Total Grams Of Gold in the Ore, Total Ounces of Gold Produced, Total Tons of Gold Extracted, Gold Price Per Ounce.
Direct Costs of a Mine are costs directly related to the extraction of gold from the ore deposit. We have included assumptions on the Mining Cost Per Ton Of Ore, Milling Cost Per Ton Of Ore and Other Costs Per Ton Of Ore (which includes all other production/extraction related costs).
Operating Expenses Assumptions
Operating expense assumptions are typically based on historical data, industry benchmarks, market trends, and management's judgment. They are crucial for estimating the total cost of running the business and for determining profitability. Like revenue assumptions, it's important to regularly review and adjust operating expense assumptions to reflect changes in the business environment and ensure the accuracy of financial forecasts. In our model we have included detailed inputs on Gold Mining Staff Costs (Executive Team (CEO, COO, CFO, CTO), Operations Team (Mine Manager, Production Manager, Maintenance Manager, Health/Safety/Environment Manager), Technical & Engineering Team (Senior Mining Engineer, Geologist, Metallurgist, Surveyor), Finance & Administration Team (Financial Controller, Accountant, HR Manager, Administrative Assistant) and Other Staff relevant to the operations. We have also include Expense items including Equipment Maintenance, Fuel and Energy Costs, Consumables and Suppliers, Transportation and Logistics, Insurance, Environmental Management Costs, Security, Office Expenses and Other costs.
Funding and Other Assumptions
Capital expenditure (Capex) assumptions refer to the anticipated investments a company plans to make in long-term assets, such as property, plant, equipment, and technology, over a specific period. These assumptions are crucial for financial planning, budgeting, and forecasting, as they impact the company's cash flow, profitability, and growth prospects. We have included Initial cost assumptions for the main items likely to be on a company's capex sheet (land acquisition, permitting and licensing costs capitalized, exploration and feasibility studies costs, mine development, equipment purchase, infrastructure development, construction of the processing plant, and other related costs. There is also a Use Of Funds assumption list with corresponding bar chart included.
Monthly Projections (10 year period)
We have broken down projections on a Month by Month basis when projecting Income Statement, Balance Sheet and Cash Flow Statement items. The monthly projections are provided over a 10 year time frame. This is particularly useful for businesses looking at month-on-month trends and insights in the business, which leads to better decision making and also better budgeting should there be a need to either raise more capital, pursue growth opportunities from excess capital or pay down interest bearing debt. Monthly projections also help a business ascertain what performance may be seasonal in nature when looking at growth projections on a month-over-previous-year's-month basis.
Annual Projections (10 year period)
The model has Annualized Financial Projections of Income Statement, Balance Sheet and Cash Flow Statement over a 10 year time frame. Annual projections provide an excellent overview of expected revenues, expenses, profits, cash flow, and other key financial metrics for the upcoming year. Annual projections are essential for strategic planning, budgeting, fundraising, and performance evaluation for any company at any stage of their business cycle.
Gold Mining Metrics & Ratios
Gold Mining specific metrics (Annual Ore Production, Strip Ratio (Waste to Ore Ratio), Gold Grade (grams/ton), Mill Recovery Rate %, Gold Price Per Ounce, Mining Costs Per Ton, Milling Costs Per Ton), Profitability Metrics, Liquidity Ratios provided.
Summary of Financial Statements (10 year period)
Summarized Financial Statements over a 10 year time frame helps for better snapshots of financial performance. Income Statement, Balance Sheet and Cash Flow Statement all provided.
Charts
Gold Mining specific Charts available including Ore vs Gold Extracted, Gold Sales vs Direct Costs, Cashflow Summary and Profitability Analysis.
DCF Valuation
We have included a Discounted Cash Flow (DCF) Valuation model showing the Net Present Value (NPV) of the Business based on a series of growth rates and assumptions. Weighted Average Cost of Capital Assumptions also provided including Risk Free rate, Beta, Risk Premium and Equity Risk Premium. A DCF valuation is a method used to estimate the value of an investment, business, or asset by discounting its expected future cash flows to present value. It is based on the principle that the value of an investment is determined by the present value of its future cash flows. The DCF valuation technique is widely used in finance, investment analysis, and corporate finance for making investment decisions, determining the fair value of securities, and evaluating the worth of businesses.
Depreciation Schedule
Detailed Depreciation Schedule shows additions / disposals to the Fixed Asset Register of the business. Sections included for Land, Building, Equipment, Others.
Debt Schedule
Debt schedule provided with interest rate assumptions and payback period assumptions included.
Equity Schedule
Equity schedule provided with assumptions on all investments into the business by investors or owners.
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Source: Best Practices in Mining Industry, Integrated Financial Model Excel: Gold Mining Financial Model Excel (XLSX) Spreadsheet, Financial Models Hub
