United Kingdom

Mining faced with multiple challenges in the changing world 

Through our work with clients, we are able to provide clarity on the impact key strategic and tactical decisions can have on business performance. Our recent case studies below demonstrate how KPMG’s Business Modelling Services help clients through all these issues.
Mining faced with multiple challenges in the changing world

Bankable feasibility study

  • We worked with a client to help them develop three separate preliminary economic assessment models to support development of two iron ore mines and one processing plant in Scandinavia.
  • Following the completion and sign off of the first preliminary economic assessment, the model was significantly enhanced to support the subsequent bankable feasibility study process.
  • We are also working with the client to develop a high level corporate model. Their projects are at various stages of development and they want a high level model to allow them to assess the impact of these projects on their corporate level financial position. In addition to providing the client with a base case financial position, the model also allows them to quickly and easily run a range of sensitivities at both the individual project and overall corporate level.

Business planning model to assess customer contracts

  • Our client needed a multi-functional forecasting tool that could be used for their strategic planning and budgeting processes, as well as supporting them in their re-financing exercise.
  • We worked with them to develop a tool which forecasts coal extraction and activity of the existing and future portfolio of coal mines individually. Also included were detailed customer contracts allowing the client to manage contract commitments, pricing and market spot sales.

Financial forecasting to support an acquisition

  • One of our clients was investigating the purchase of a UK mining operation and needed a financial model to support the acquisition process.
  • We were able to combine the output from the new model with their existing business to assess the overall expected business development. The transaction base case allowed the testing of alternative scenarios and sensitivities e.g. flexing revenue and cost assumptions. The model was also used by the investment bank to support their decisions on deal financing.

Contact

Contact
 

Fiona McDermott

 

Partner
KPMG LLP (UK)

 

020 7311 1728 | fiona.mcdermott@kpmg.co.uk

How we can help

Modelling across the sectors