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Designing a Progressive Risk and Value ‘Dashboard’ for Explorers, Project Developers & Mining Companies

Western Australia

Mineral explorers, project developers and emerging mining companies, whether operating in Australia or overseas, face both internal and external business challenges that can be characterised by a combination of risk-types and value-drivers.  Typically a company will seek to accrete value progressively as it advances through the stages of the mining cycle to achieve first production – whilst simultaneously mitigating the various risks posed along the way – be those technical, legislative or corporate risks.  This project aims to develop a semi-quantitative framework capable of estimating, tracking and communicating a company’s progress against stage-gated, standardised, value and risk trajectories for different mineral commodities. 

A simple graphical framework has thus far been developed and published.  The framework divides value accretion trajectories between deposit-types based upon a classification of metals and minerals as either ‘convex’ (accreting value on discovery) or else ‘concave’ (accreting value upon project delivery).  In parallel, the framework also provides for a qualitative  assessment of both technical and corporate risk, based upon standardised functions for each of these risk-types as a project progresses from early-stage exploration through to commissioning and production.  

Further research work is ongoing – aimed at semi-quantifying the framework, at achieving a deeper understanding of the convex versus concave value accretion characteristics of different mineral commodities and deposit-types and also targeting the addition of country-risk metrics into the overall framework.