Bankable Feasibility Study

As commodity prices have remained stagnant for the last five years or so, financing deals in the mining industry are drying up. According to Business Vancouver, money raised in the mining sector in British Columbia alone dropped 40% compared with 2015: from $6.14 billion to $3.69 billion. Companies have to become more competitive in their search for money – but how?

One way to achieve that is through a truly “bankable” feasibility study. Typically, a bankable feasibility study is a comprehensive forward analysis of a project’s economics in the range of +/- 10% precision that seeks to convince investors of the credit-worthiness for project financing. The format prescribed by NI43-101 has largely remained unchanged for decades and that gives innovative mining companies an opportunity to differentiate themselves by preparing feasibility studies that run through many sensitivity tests and identify with objectivity the best-case scenario for profitability. Sensitivity analysis, such as Monte Carlo simulations, performed by an external vendor on stockpile blending, can run through multiple scenarios and combination to determine the optimal tonnage and time to blend different grade stockpiles in order to maximize processing plant performance. That will result in savings in final products penalties and improvement in the project financials above and beyond back-of-the envelop calculations.

Magemi Mining Inc has developed Magemi Mine Optimizer with that purpose in mind. With a click of a button, the optimizing software runs through multiple blending strategies and finds the optimal blends that maximize revenue and cash flows. The software goes through multiple sensitivity scenarios in the mine and plant production parameters, CAPEX, OPEX, prices, foreign exchange rate, and discount rate to produce a truly “bankable” solution that gives mining companies a unique competitive advantage in their feasibility studies.

The mining industry is tired of the gloom and doom and senior miners have already embraced forward-thinking technology solutions and consulting services in search of cost savings and optimal performance. That is the only way to go in a world of low commodity prices and reduced pool of investment options. Contact Magemi Mining to get started today.

Mining Salons