Mining Business Case for Capital

 

Only a strong mining business case will be able secure mining capital. The mining business case is the process from mineral in the ground to market.  It is generic for all commodities. Mining capital needs to be tailored to the specific mining business case.

 

The mining business case entails:

 

  • Reserves: The economic mineable portion of a mineral resource in a geological model
  • Team: A skilled and experienced mining team.
  • Licencing: The mining project has all the required licenses in place to enable mining.
  • Mining: The presence of a mine plan and schedule, the mining method and cost of mining.    
  • Mineral processing: The process of extracting and processing minerals to produce mineral product.
  • Logistics: The logistics path of the mineral product to the market, depending on the commodity via road, rail, ship or plane.
  • Market: The presence of a market and an off-take agreement for the mineral product.  
  • Sustainabity: The mining project or operation being environmentally compliant; positive relationship of the mine with the community. 
  • Legal: Agreements in place with suppliers and stakeholders.
  • Implementation plan: The presence of a structured plan to implement the project. 
  • Economic analysis: An strong economic model with production and revenues, capital costs, operating costs, cashflows, NPV, IRR and payback calculations.

The mining business case is developed via the following steps:

 

MX Mining Capital Advisors:

 

  • Analyses the existing mining business case of the client with regards to its ability to attract and secure mining capital
  • Identifies shortcomings of the business case
  • Develops solutions together with the client that will improve the ability to secure mining capital
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