Poree Consulting believes that a financial model should go beyond merely delivering a valuation. It should offer valuable insights into the project, enhancing the understanding of the asset and identifying ways to unlock additional value. Our approach ensures that Executives and Boards gain a clear understanding of the key drivers for value creation and risk management.
We believe models should strike a balance between detail and simplicity—detailed enough to ensure robustness and confidence in the study and model inputs, yet user-friendly and easy to navigate. The model should also allow for the creation of new scenarios when needed. In today’s uncertain environment, flexibility and functionality are essential, enabling project teams to plan for various potential outcomes. This is facilitated by an executive-friendly dashboard that allows for quick scenario analysis, sensitivity analysis, and probabilistic modelling with just a click. Potential scenarios might include off-balance sheet financing, owner versus contractor-operated mines, schedule changes, and delays, among others.
Integrity & Robustness
Uncompromising accuracy and resilience, ensuring trust and reliability in every scenario.
Detail & Simplicity (Executive-Friendly)
Models that balance precision with clarity, presenting complex data in an accessible, decision-ready format.
Functionality & Insight
Models that go beyond calculations, providing actionable insights that drive informed decisions
Strategic Guidance & Project Steering
Empowering clients to navigate complex projects with confidence
Why you need financial modelling
Decision-Making Support
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Models provide clarity on the financial implications of decisions such as launching a new product, expanding operations, or adjusting pricing strategies.
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Helps business leaders weigh risks and reward based on quantified data.
Fundraising & Investment
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Essential for presenting to investors, banks, or stakeholders, as it demonstrates the potential profitability and financial health of the business.
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Projects future cash flow and returns, building confidence in the viability of the business.
Performance Monitoring & Forecasting
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Models help track key financial metrics and compare actual performance against projections.
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Facilitates adjustments in strategy if outcomes deviate from expectations.
Scenario Analysis
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Simulates “what if” scenarios (e.g., changes in costs or sales volume) to prepare for various outcomes.
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Enables proactive planning for best-case and worst case scenarios.
Cost Management:
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Identifies inefficiencies and optimises resource allocation by visualizing how different cost drivers impact profitability.
Typical Valuation Model Structure
INPUT SHEET
GLOBAL INPUTS:
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Foreign currency assumptions
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Escalation and deescalation rates
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Sales prices per saleable
product
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Statutory inputs e.g. tax
rates
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Working capital assumptions
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Discount rate
SCENARIO SPECIFIC INPUTS:
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Production schedule
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Yields / Recoveries
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Selling expenses
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Fixed and variable cost rates, processing and indirect costs
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Capital estimates
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Sustaining capital assumptions
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Closure Costs
SCENARIO & SENSITIVITY DEVELOPMENT
• Sale price sensitivity
• Yields / Recoveries sensitivity
• Opex sensitivity
• Capex sensitivity
• Sustaining capital sensitivity
• CP and exchange rate sensitivity
• Value distribution analysis
CALCULATION SHEETS
The following calculation sheets combine the assumptions from the input sheets to determine the following:
• Revenue (gross and net)
• Underground operating costs
• Processing costs
• Indirect processing costs
• Capital and sustaining costs
• Royalties
• IncomeTax
VALUATION SUMMARY
Combines all the calculation sheets to derive the following:
• Net free cashflow after tax
• Cumulative cashflow
• NPV
• IRR
• Payback period
• Other
DASHBOARD
Summarizes the valuation outcomes:
• Results from valuation summary
Functionality to perform the following:
• Dynamic scenario
analysis for both input assumptions and valuation scenarios
• Sensitivity analysis
