NOTE: This project is purely to apply concepts that I have learned from courses and certifications completed and not a formal, independent analyst opinion of any kind.
Find the model here. Any feedback is welcome.
Overview
Revisit of prior three statement model built on historical financial statements for this entity. Cash is reconciled. Another rep. Iteration of the layout and set up, approaches towards certain balances.
Please note this does not utilise a life of mine model, I’m either using growth rates and ratios based on historical financials or making up certain assumptions to have numbers to play with.
Takeaways
- A thought while preparing this one was about drivers. Linking everything to revenue doesn’t / won’t always make sense. In this instance copper prices would have significant impact on increasing revenue. Gross margin would increase and therefore projecting historical gross margin wouldn’t make sense – cost of goods sold wouldn’t go up just because revenue has if price is the driver. Projecting additions to property, plant and equipment for example using a capital asset turnover ratio could be misleading. The historical rate applied to higher revenue driven by increasing commodity price would project much higher additions which may not be reasonable.