Econometrics
The economic benefits of a mining project are evaluated using a dynamic, scenario-based approach that accounts for market volatility, operational variability, and fiscal conditions, with CAPEX and OPEX assessments supported by real-world supplier data.
MLG Econometrics Services – Technical Overview
MLG Econometrics Services specializes in comprehensive economic and financial analyses tailored to mining and industrial project development. Through robust financial modeling, risk-adjusted return assessments, and feasibility validation, we ensure optimized decision-making from exploration to project closure. Our services are aligned with international standards such as NI 43-101 and JORC, enabling confidence from both investors and regulatory authorities.
Cost analysis
MLG provides detailed Capital Expenditure (CAPEX) and Operating Expenditure (OPEX) assessments, supported by real-world data sourced from vetted equipment and reagent suppliers. Each cost analysis integrates:
- Supplier-based pricing breakdowns from RFQs and vendor quotations,
- Process-level cost modeling (mining operations, ore beneficiation, logistics, energy, reagent consumption, and manpower),
- Direct and indirect costs estimation, including EPCM, contingency, infrastructure, and environmental compliance costs,
- Cost structure optimization via comparative benchmarking against similar operations,
- Monte Carlo simulations to assess cost variability and confidence intervals.
This comprehensive cost framework supports accurate budgeting, informed financial forecasting, and robust project design.
Benefits
The economic benefits of a mining project are estimated through a dynamic and scenario-based approach that reflects market volatility, operational variability, and fiscal environments. MLG conducts:
- Revenue stream projections based on long-term commodity price forecasts and product recovery rates,
- Fiscal incentive modeling, including depreciation, tax holidays, and royalties,
- Net cash flow modeling over the life-of-mine (LOM),
- Local economic impact assessment, including employment, training, and local procurement effects,
- Environmental and social benefit estimations, factoring in ESG compliance, community development contributions, and sustainable development indicators.
Our benefit assessments are integral to building strong business cases and stakeholder engagement strategies.
Financial evaluation of mining projects
MLG offers high-resolution financial evaluations aligned with international investment standards. Our evaluations include:
- Discounted Cash Flow (DCF) modeling, applying project-specific discount rates to derive Net Present Value (NPV/VAN),
- Internal Rate of Return (IRR/TRI) calculation, accounting for CAPEX, OPEX, tax regimes, and financing structures,
- Sensitivity analyses (price, grade, recovery, CAPEX, OPEX) to evaluate project robustness,
- Break-even analysis and payback period calculations,
- Scenario modeling (base case, optimistic, pessimistic) for investor and board-level decision-making,
- Financial stress testing under volatile commodity price regimes or cost escalations.
We also include financial risk assessments, applying tools such as real options valuation and probabilistic forecasting.
Evaluation of mining properties
MLG provides property valuation and due diligence services that meet international reporting standards (NI 43-101 / JORC). Our methodology encompasses:
- Market-based evaluations (Comparable Transactions and Multiples),
- Cost-based evaluations (Appraised Value and Replacement Cost Method),
- Income-based valuations (DCF of future cash flows or Royalty Interests),
- Technical Due Diligence for mergers, acquisitions, or investment decisions,
- Gap analyses of resource/reserve data, permitting status, infrastructure, and legal encumbrances,
- Economic viability assessments including resource conversion potential and downstream processing opportunities.
Our evaluations are supported by cross-disciplinary expertise spanning geology, metallurgy, environmental science, and project finance.
