Financial Model & Valuation with Mining Companies | Course Module

Financial modeling for mining companies requires a very different approach than modeling traditional operating businesses. This course walkthrough introduces an advanced application of Excel-based financial modeling that starts with a feasibility study and builds toward a full cash flow and valuation model for a mining asset. The focus is on translating geologic and engineering inputs into financial outputs. Ore types, grades, recovery rates, payability, and production profiles all play a direct role in revenue generation, making mining one of the most assumption-driven industries to model above the revenue line. The walkthrough shows how these drivers are structured, linked, and stress-tested within a comprehensive financial model. From feasibility study to valuation: The modeling process follows the mining life cycle, from early-stage projects through construction, production, and eventual closure. Key technical reports such as scoping studies, preliminary economic assessments, prefeasibility studies, and feasibility studies provide the foundation for the assumptions used in the model. Understanding reserves, resources, and production The course explains how mining companies classify reserves and resources, how geological certainty and economic viability affect value creation, and how production schedules are tied directly to these classifications. These concepts are carried through the model to track depletion, output, and long-term asset value. Building the financial model: The walkthrough covers how revenue is derived from physical production metrics, how operating and capital costs are modeled, and how depreciation, working capital, and free cash flow are calculated. The final output feeds into a discounted cash flow model to estimate the net present value of a mining asset. Relevant for: Finance professionals, analysts, and students interested in advanced financial modeling, natural resources valuation, and industry-specific modeling techniques. This course is an elective within CFI’s FMVA certification and is designed for learners looking to deepen their modeling expertise across specialized industries. Subscribe for more practical insights on financial modeling, valuation, and Excel-based analysis.