Technical Economic Modelling - Mining Feasibility & Due Diligence
The development of a Technical Economic Model (TEM) is a fundamental part of any mining feasibility or due diligence study and in order to derive income based approach valuations. SRK has developed a team who specialise in the production and review of TEMs.
As part of a scoping, pre-feasibility or feasibility study SRK will develop a fully integrated TEM using the technical and economic inputs provided by the specialists in their respective fields and also build in the flexibility for scenario and option analysis in order to assess the optimum plan for the project.
SRK typically uses the same approach as part of a due diligence review or valuation. By developing its own TEM based on that provided by the client if available, SRK considers this not only ensures the integrity of the model itself but also enables the inputs to be verified and alternative inputs to be evaluated which assist in assessing the viability or sensitivity of the project to different technical and economic parameters.
SRK has extensive experience in the production and review of TEMs as part of scoping, pre-feasibility and feasibility studies and also as part of due diligence reviews for projects seeking to raise project finance or in deriving a value for a company or project seeking to raise new equity through listing on a stock exchange. In addition, SRK can develop TEMs for companies or projects for use in merger and acquisition transactions.
Due to our independence SRK is often called upon by international banks and financial institutions to assist them in making a decision regarding providing project finance and also by mining companies seeking to obtain an independent valuation of their company or project.
Our team works alongside other in-house specialists in the fields of geology and resources, mining engineering, mineral processing and in the areas of tailings, water and environmental management to ensure the technical and economic inputs to the TEM are appropriate for the study being undertaken.
Development and review of TEMs for:
- Scoping Study.
- Pre-Feasibility Study.
- Feasibility Study.
- Project Finance.
- Equity raising.
- Mergers and Acquisitions.