Project Description

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Overview

An exploration company located in Western Australia.

Business Challenge

Helix had identified an economically recoverable iron ore resource of 60 million tonnes within its tenements which it wanted to progress towards production.

The company needed an initial feasibility study so that it could consider the cost-benefit outcomes of various strategies for commercialisation of the resource.
The model needed to be flexible to allow modelling of various scenarios; it needed to include sensitivities that would indicate the range of likely results; and it needed to provide a succinct report to the Board of Directors that highlighted the key inputs and outputs.

At the time, the company was not large enough to require a full-time analyst and had very tight deadlines for its next Board meeting.

How Access Analytic Helped

We utilised financial modelling software to quickly develop a robust, user-friendly, and flexible model that clearly communicated the results of the initial feasibility under various scenarios.

The model included an integrated balance sheet, cash flow and profit & loss statement as well as sensitivity analyses and NPV. It also included a summary for the Board of all key inputs, outputs and sensitivities.

Business Benefits

  • The Executive Chairman used the results of the model to provide the Board with an investment proposal that they could use to quickly evaluate various options for developing the resource.
  • As a result, the Board were able to make their initial decisions regarding progressing the resource.
  • Using the financial modelling software provided a robust, pre-built platform on which to quickly build the feasibility study. This allowed a faster development time and provided a model that was easy to adapt.