IVRM Services

Portfolio Analysis

Mining project portfolios combine projects at various stages of exploration, development, and operation that are exposed to a complex mix of market, technical, and execution risks.  Understanding how each project and possible divestiture or acquisition candidates affect the overall portfolio risk characteristics and corporate strategy is difficult with conventional static cash flow modelling and scenario analysis

With dynamic cash flow models and Integrated Valuation and Risk Modelling (IVRM), we generate insights into portfolio risk characteristics and the impact of various projects on these characteristics.  Our analysis considers different types of risk, such as country risk, and how these risks can be managed through design choices, financing arrangements, and diversification.  Risk summaries provide information for corporate risk budgeting and enterprise risk management activities.

We build dynamic cash flow models to help you assess the value and financial risk exposure of:

  • A portfolio with a mix of exploration, development, operating, brownfield, and innovation assets.
  • Understand the risk trade-offs associated with having assets in different countries and at different stages of development.
  • Visualize how an exploration project is de-risked while advancing through an exploration pipeline.
Individual project sensitivity to market, technical, and execution

Risk matrix showing portfolio project sensitivity to financial, execution, and technical risk.

Individual project sensitivity to market, technical, and execution
Portfolio sensitivity to market, technical, and execution risk before and after an acquisition.

Risk matrix showing how portfolio risk changes with an acquisition.

Portfolio sensitivity to market, technical, and execution risk before and after an acquisition.
Portfolio absolute and relative risk before and after an acquisition.

Portfolio relative and absolute risk comparison before and after an acquisition.

Portfolio absolute and relative risk before and after an acquisition.