Provide financial evaluations
Marston provides comprehensive financial modeling and economic evaluation services for any aspect or stage of mining projects. From project exploration to mine closure, Marston develops conceptual to detailed cost estimates and financial analyses for use in project feasibility studies, budgets, valuations, capital justification and reclamation accruals. Marston’s cost estimates are grounded in practical engineering and tempered with the perspective of years of mine operations and management experience.
Economic models and valuations
Marston develops economic models and valuations of many mining projects worldwide. Valuations have been provided for investment decisions, project financing, and dispute resolution. Marston has performed valuations based on:
- net present value and internal rate of return estimates
- analyses of comparable transactions
- plant and equipment value and replacement value
Bankable financial models
Marston provides detailed mining project financial models to banks and other investors for valuation and sensitivity analyses. These models are based on mine plans and production schedules that reflect historical performance and results, if applicable. For new projects, Marston’s estimates are designed to be practically achievable based on the actual and likely geological and mining conditions associated with each project.
For project optimization, equipment selection or capital justification studies, Marston will develop detailed economic analyses of practical available alternatives. Marston’s economic studies focus on determining the estimated life cycle value of each alternative, including impacts on capital and operating costs, production and productivity.
Detailed Project and Operations Budgets
Marston develops detailed budget models of mines or mining projects for producers, cost-plus contract buyers and financial institutions. Most often, our budget models are zero-based. They are designed to accept annual labor and equipment work effort estimates from detailed mine planning exercises. Overhead costs, burdens and similar charges are based historical values or line item estimates. These are based on the best available information at the time of the budget.
Cost, Escalation and Productivity Studies
Marston conducts detailed analyses at mines to determine controllable costs, cost escalation, and productivity trends. Coupled with a thorough review of historical work effort records versus plans, these analyses form the basis for recommendations on contract cost escalation factors, controllable costs, and work efficiency and planning improvements to realize significant added value from operations.
Mine Reclamation and Closure Liability and Accrual Estimates
Marston provides defensible independent estimates and accrual calculations for final mine reclamation and closure. Marston’s estimates meet the requirements of U.S. securities regulations including Sarbanes-Oxley. The estimates and accrual calculations are based on work effort and schedules required to fill and reclaim pits and all other mine structures that will remain when all production ceases from a mine area. Marston’s estimates are thorough, detailed and fully documented.