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Explorers, developers and royalties

Mine developer financial model, built free.

A three-statement Excel model for a mine developer, built from your own figures and checked to balance.

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We use generative AI in parts of our process, so mistakes can occur. Every model should be checked by a person before it is relied on. Read more

The business

Holds a defined deposit and is studying, financing and building a mine, with value driven by project NPV, funding and time to first production.

See the sampleHow the model works

In short

  • 01

    Three linked statements

    Income statement, balance sheet and cash flow, linked in every period.

  • 02

    Valued three ways

    Discounted cash flow, net asset value and project equity NPV, side by side.

  • 03

    Monthly to annual

    Monthly, quarterly, half-yearly or annual periods, for up to 30 years.

  • 04

    Checked every period

    A Checks sheet shows the balance sheet balances and the cash reconciles.

The sample

The sample, as Excel draws it.

Built by the same system and checks as yours, on illustrative figures: every sheet as Excel draws it, or live.

Annual · 10 years · Low detail
Mine developer sample model.xlsx
The Summary sheet of the sample mine developer model

Illustrative figures: the sample describes no real business. The live preview shows values; your model’s Excel file has every formula.

How it works

How the model works for a mine developer.

  1. How it earns revenue2 formulas
    Sales and realised prices · All mines
    Gold salesHedged salesSpot sales
    Sales and realised prices · All mines
    Gold spot priceGold spot price, last periodAnnual gold price change1 in the first period of each year
  2. What drives its costs3 formulas
    Site operating costs · All mines
    Site operating costsMining costsProcessing costsSite general and administration
    Rehabilitation and closure · All mines
    Closing provisionOpening provisionProvision built up (operating charge)Closure spending
    Exploration expenditure · Across the business
    CapitalisedExploration and evaluation spendShare of spend capitalised
  3. What it invests in3 formulas
    Mine assets and depreciation · All mines
    Mine capital expenditureMine development capexfrom development and first productionSustaining capexGrowth capex
    Mine assets and depreciation · All mines
    Depreciation and amortisation (units of production)Opening net book valueMine capital expenditureShare of remaining reserves mined
    Mine assets and depreciation · All mines
    Closing net book valueOpening net book valueMine capital expenditureDepreciation and amortisation (units of production)
  4. How it is funded3 formulas
    Streams, prepayments and metal loans received · All mines
    Interest accruedPrepayment at period startPrepayment receivedInterest rate on the prepaymentshare of the year
    Streams, prepayments and metal loans received · All mines
    Prepayment outstandingPrepayment at period startPrepayment receivedInterest accruedRepaid by deduction from shipments
    Debt
    RepaymentsScheduled repaymentsPrepayments from an equity raise and the cash sweep
  5. How profit becomes cash3 formulas
    Working capital
    Trade receivablesRevenuefrom statementsDebtor daysDays in period
    Working capital
    InventoryDirect costs (positive)from statementsInventory daysDays in period
    Working capital
    Trade payablesCash operating costs (positive)from statementsCreditor daysDays in period
What it covers

35 parts, each one tested.

Every part is a tested building block with its own checks: yours is put together from the ones your business needs.

  • CPI forecastConsensus curve with long-run anchor
  • Exchange rate (US dollar)Exchange rate by financial year
  • Corporate costsFixed cost base indexed to CPI
  • Working capitalFull working capital
  • Income taxCorporate rate with tax losses
  • DebtAmortising term loan
  • Discounted cash flow valuationDCF on free cash flow to the firm
  • Net asset valueBook net asset value
  • Interest-rate hedgingHedged share at a fixed rate
  • Group unit costs (single-product portfolios)C1, C2 and C3 cost per poundGroup unit costs, realised prices and margins that investors use to compare miners. Only meaningful when every mine sells the same product.
  • Exploration expenditureMetres drilled × cost per metreExploration and evaluation spend, how much is capitalised or expensed, and write-offs.
  • Key-metric summaryLast-twelve-month and run-rate metrics
  • Construction funding and drawdownEquity first, then debt
  • Cash flow available for debt service (CFADS)From free cash flow to the firm
  • Debt sizing and sculptingLower of DSCR capacity and maximum gearing
  • Senior project debtSculpted repayment
  • Reserve accounts (DSRA)DSRA built from operating cash flow
  • Cover ratios (DSCR, LLCR, PLCR)Period DSCR with LLCR and PLCR
  • Project and equity returnsProject IRR, equity IRR and NPV
  • Discount rate (WACC)CAPM at target gearing
  • Burn and runwayRunway to the forecast cash-out date
  • Project timeline and phasesKey dates and durations
  • Tax depreciationTax life equal to book life
  • Shareholder loans and the equity splitOrdinary equity only
  • Cash flow waterfall and distribution lock-upStandard cascade with lock-up test
  • Streams, prepayments and metal loans receivedOfftake prepayment repaid from shipmentsUpfront funding repaid in product — stream deposits, offtake prepayments and metal loans — held as deferred revenue or a liability.
  • Mine registerMine register with resource conversionThe facts every other part of the model builds on — mineable inventory (reserves plus any converted resources), carrying value and mine life.
  • Development and first productionInitial capex to first production, then ramp-upPre-production construction capex, first production date and ramp-up to nameplate for new mines and expansions. Development capex feeds the asset base (and so PP&E and investing cash flow).
  • Mining and processingMill throughput × grade × recovery (gold)The physical chain from ore and waste mined, through plant throughput, head grade and recovery, to payable product (in units of the mine's own product: ounces, tonnes, dry metric tonnes, pounds) and the reserves remaining.
  • Sales and realised pricesPartly hedged gold sales (hedge book at a fixed price)Product sold × realised price, including hedging, offtake terms, quality adjustments and smelter charges. Units sold and prices are per unit of the mine's own product; the market price (spot, or FOB for bulk commodities) is the royalty value basis.
  • RoyaltiesHybrid royalty (greater of ad valorem and profit-based)Government royalties, third-party royalties and community payments on each mine's production.
  • Site operating costsUnit rates (mining $/t, processing $/t, fixed site G&A)Mining, processing, site administration and (for bulk commodities) rail, port and shipping costs.
  • Mine assets and depreciationUnits-of-production depreciation on ore reservesSustaining and growth capex (including capitalised stripping and underground development) and depreciation of mine properties and plant.
  • Rehabilitation and closureClosure cost built up over the ore reservesThe rehabilitation and closure provision — build-up or unwinding, progressive rehabilitation spend and final closure. Build-up is an operating charge (direct costs); the unwinding of discount is a non-cash finance cost.
  • All-in sustaining costAll-in sustaining cost net of by-product creditsEach mine's all-in sustaining cost on the industry-standard definition, for unit-cost reporting.
Key numbers

The numbers it tracks.

  1. 01initial capex
  2. 02time to first production
  3. 03project NPV and IRR
  4. 04payback
  5. 05peak funding need
Used for

What it is used for.

Also used for
  • Scenarios and sensitivities
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The sample is built on illustrative figures and describes no real business. Models are calculations prepared from the information you provide. They are not financial advice and must be independently verified. See our terms.