Investors often need to assess commodity investment opportunities based on limited information available and long-time horizon. This increased uncertainty requires an amended set of assessment tools to provide an objective and reliable basis for evaluation.
DMM experts have ample experience with questions investors ask about commodity and mining projects including green-field, brow-field, producing mines etc.
Examples of projects include:
- Due diligence of the investment plan and management of a mining company for a private equity investor.
- Independent, third-party benchmarking of CAPEX, OPEX (special focus on royalties, environmental costs and expenses related to possible delays) and prices used in the financial evaluation of a mine.
- DCF modelling of forecasted cash flows for an operating junior producer.
- Evaluation of the market part of the Pre Feas Reports including review of assumptions made about the market, supply/demand, competition and price.
- Comparative due-diligence for different mining projects for a private equity investors
- Throughout financial evaluation of route-to-market and commercial options for a project/producer including development of marketing structures / offtake agreements.
Evaluation of investment opportunities
- Cross-evaluation of long-term investment potential of different mining products.
- Analysis of the investment potential of diamonds for investors.
- Market entry analysis of a metal producer incl. DCF model.
- Commercial evaluation of a poly-metallic junior miner.
Market analysis and forecasting
- Market analysis, supply/demand and price forecast for different metals, alloys and intermediates to complement existing market research
- Appraisal of less well documented markets including
- niche markets
- ore concentrate markets
- smelters’ terms
- markets of further intermediate products.
- Analysis of different market participants including technologies used, products produced, geographic markets, by-products management, commercial terms and customers.