Financial Model for Open-Pit Mining Operation

Performing a financial feasibility analysis will help prospective mining operations understand risks and returns better. No matter if you are mining gold, gems, rock/gravel, or what have you, this template will help with the finance side of things. This financial model was targeted to help open-pit mining operators, but any type of mine could benefit from use and general assumptions would be applicable.

$45.00 USD

The template will be immediately available to download after purchase. This is included in the industry-specific financial model bundle and the industrial sector niche bundle.


gold mining

Recent Update: I've added logic on the 'Mine/Ore' tab so that an annual change in price can be accounted for in each ore type over time. This helps to determine the effect of inflation/deflation on your total returns.

Upgrades: Integrated dynamic CAPEX with depreciation, 3 statement model (Income Statement, Balance Sheet, Cash Flow Statement) as well as an integrated cap table.

The bulk of this work was about figuring out all the related capital startup costs, employee types needed, and general supplies used on an annual basis. After that part was solved, it simply became a matter of figuring out how to project revenue. For that part, I took a unique approach and assigned a % to each ore type and gave that ore type a value per tonne. Then, you can simply enter the amount of ore you plan to produce on a daily basis. Based on that and the % of each ore type you expect to be in each tonne, the model tells you the projected revenue per year.

Some quick features include the ability to project out 50 years, see a break-even value, in summary, see total and net pre-tax cash flow based on a given terminal year, and visual charts that show costs/cash flow.

A well-structured financial model does a great job of forecasting potential cash flows based on bottom-up revenue drivers, initial investment, and operational costs as long as these assumptions being input are accurate or representative of actuality as much as possible. That is what this financial model has done.

I tried to make these costs as closely related to what is actually needed if you were to have your own mining setup. The user has the flexibility to change any of the cost assumptions to whatever they may actually see when doing their due diligence.

Financing assumptions have been added to this model which enables the user to pick how much they want to put up in cash/equity compared to the amount financed with a traditional loan. The corresponding debt service would then populate in the pro-forma accordingly. You will be able to set all the loan parameters also.