IVRM Services

Project Evaluation

Mining projects are inherently difficult to analyze, given the design, financing, and operating choices available to a project developer.

Integrated Valuation and Risk Modelling (IVRM) can show the value and risk trade-offs between competing design and capital investment choices that are simply not apparent with static cash flow analysis. Our analysis considers the possibility of multiple future operating choices, such as investing in an expansion, and the likelihood that a specific choice is made. Additional study provides risk information about expected losses, loss probability, and loss consequence for each design alternative.

We build a dynamic financial risk model to help you assess the value and risk exposure of:

  • An exploration and development pipeline
  • The choice between front-loaded and staged capital development plans
  • Understand the trade-offs associated with moving from open pit to underground operations
  • Many other real option investment decisions
Decision tree for staged project

Decision tree detailing design choices linked to staged and frontloaded capital designs

Decision tree for staged project
Probability map for project stages

Probability map outlining the likelihood of a particular expansion choice

Probability map for project stages
Expected loss matrix for staged project

Expected loss matrix outlining loss consequence and probability for different design alternatives

Expected loss matrix for staged project