Image rights: https://dailytimesng.com/group-kicks-rock-blasting-residential-areas/ Definition “Flyrock” means rock that is thrown through the air because of blasting. Flyrock is an integral part of blasting that needs to be properly controlled. If flyrock is uncontrolled the rocks, which can travel significant distances, pose a risk to persons involved with blasting as well as anyone else around the […]

Image rights: Unsplash Introduction Mining projects, characterized by their substantial capital requirements and long-term horizons, are inherently risky. Effective financial risk management is crucial for ensuring the viability and profitability of these projects. This article explores the various financial risks associated with mining projects and outlines strategies for managing these risks. Key Financial Risks in […]

Image rights: Simandou deposit, Guinea. (Image courtesy of Rio Tinto.) 13 worker deaths reported at Simandou since June 2023, sources and documents say Some safety guidelines not implemented, according to sources and accident reports Project prioritizes schedule over safety, some sources say Guinea is investigating safety issues at the mine, minister says Chinese consortium says it […]

Many investors are interested in the mining and metals sector but struggle with how to properly value these companies. Unlike typical stocks, miners have unique attributes that require a different framework for valuation. This article will provide a step-by-step guide for investors on how to value mining companies based on their resources, costs, gold price […]

The payback period is the time required for the cumulative net cash flows of a project to equal the initial investment. It is usually expressed in years or months. The net cash flow of a project is the difference between the cash inflow (revenue) and the cash outflow (costs) in each period. The initial investment […]

Introduction A form of financing. In its simplest form the royalty company provides the mine operator with an upfront payment and in return receives a percentage of revenue generated from production at the mine (What Is a Royalty?, n.d.). Mining royalties are paid to the government and landowners for mineral extraction rights. These payments ensure that […]

The Democratic Republic of Congo’s four-month suspension of cobalt exports is a sign that even the world’s largest producer is now feeling the pain of historically low prices. The news has given the cobalt market a fillip and the impact is already rippling through the supply chain with one Congolese operator, Eurasian Resources Group (ERG), […]

You might say that any form of valuation analysis is imprecise and at best directional. Many other factors go into the decision-making process. The real issue is the mining financial sector’s reluctance to adopt advanced methods. There’s too much “black box” thinking. The mining industry has long leaned on Net Present Value (NPV) for investment […]

The cost of running a mining project can vary significantly depending on several factors including the type of mining (e.g., surface or underground), the size and location of the project, the commodity being mined (e.g., gold, copper, coal), and the technology and equipment used. Here are the key components that contribute to the cost: Exploration […]

During your prospecting projects, you may reach a certain point where you have the need to complete a feasibility study. If you’ve never been to this stage of the mineral exploration process before, you may be wondering what, exactly, a feasibility study is and why it is important in mining. WHAT IS A MINING FEASIBILITY […]