Equinox Gold Financial Model is a financial model of a Gold Mining and Metal, North American Company, with Producing Mines as well as Non-Producing Mines which are in construction or development phase of the mine lifecycle. The model is ideal for investment banking, equity research, mining finance professionals and valuation experts. The model includes the following features:
- A 3-statement financial model of a Mining & Metal, Gold producer including: comprehensive production and revenue schedules, operating, capital and reclamation cost schedules, depreciation and depletion and pre-tax cashflow schedules for each mine, working capital schedule, mineral PP&E and depreciation and amortization schedule for the entire company, exploration and evaluation expenditure schedule, tax schedule, debt and interest schedule, shareholder’s equity schedule, covenants and credit statistics spanning across earnings quality, cash flow quality, operating efficiency, balance sheet quality and valuation risk metrics, income statement, cash flow statement and balance sheet for a sixteen year forecast period up until the end of life of mines.
- Historical financial statements for a period of four years, company specific operating metrics, covenants and credit statistics including earnings quality, cash flow quality, operating efficiency, balance sheet quality and valuation risk metrics.
- Critical company specific and non-IFRS operating and profitability metrics such as cash costs, average all in costs (AISC), AISC contribution margin, and various Non-IFRS measures among others.
- A comprehensive description of the mining industry metrics, lingo, definition and methodologies such as explanation of mineral resource, mineral reserve, types of studies, pushback, waste, revenue calculations, costs, mining options & warrants, reclamation cost and its treatment in the model, mining exploration expenses and its treatment in the model, depreciation & depletion, CAPEX, salvage values, pre-production projects and their valuation, various mining project valuation methods and relevant mining valuation multiples, and gold price forecasting methodologies.
- Valuation of a Gold, Mining company with six mines spread across emerging and developed markets based on the Sum-of-Part valuation and the intrinsic value approach.
- Valuation of a Gold, Mining company based on relative valuation and comparable analysis of peer group companies given the proper selection of relevant mining industry multiples.
- Option valuation of outstanding options and mining warrants for a Gold, Mining company that compensates employees and investors through options and warrants.
- Sensitivity analysis of the intrinsic valuation with respect to key revenue drivers and assumptions such as Gold prices and their forecasts for Base, Best and Worst Case scenarios.
- Monte Carlo simulation of Implied Share Price as a function of Gold prices, given the lognormal distribution of Gold prices determined based on historical Gold price, Gold price histogram and its descriptive statistics.
- Quantification of risk measures for purposes of valuation including beta calculation, cost of equity and cost of capital.
- Relative performance of stock price with respect to S&P 500, NASDAQ PHIL Gold/Silver Sector Index, VanEck Vectors Gold Miners ETF, and SPDR Gold Shares ETF.
- Gold price forecast methodology given macroeconomic inputs, derivation of predicted Gold prices, degree of over/undervaluation of Gold prices and an outlook of Gold price near-term backed by thorough analysis and data.
- Valuation and price charts of Gold Mining company given all the inputs and assumptions, scenarios and simulation.
- A summary dashboard of company report, market data, key financial metrics, annual figures, comps, valuation & statistics.
- The tabs of the models are: Cover, Summary, General Assumptions, Mine Assumptions, Historical, Model, Simulation Results, Risk, Beta Calculation, Forward Multiples, Jensen Alpha, Gold Price Forecast and Notes.
- The initiation report as of 2020Q2 is included with the package. The research report describes the mining specific intrinsic and relative valuation of this Gold, Mining company, option valuation, the operation and historical performance of the company, Gold price forecasting, sensitivity and simulation analysis as well as corporate governance issues in full details.
Equinox Gold Financial Model
- This financial model is a circular, 3-statement model along with many other features explained in the product description. Please ensure prior to opening the excel sheet, iterative calculations within the excel workbook environment has been enabled under: File/Options/Formulas/Enable iterative calculations.
- Set the Calculation options under File/Options/Formulas to ‘Automatic except data tables’. In case of the existence of data tables in the models, press F9 to refresh and update the table calculations.
- The workbook contains a Macro in the form of the product Disclaimer which should be accepted by the user; hence, please enable macros in the workbook. The financial model itself contains no macros.
- Please ensure the above steps are implemented prior to opening the excel sheet.
- If at any point #Value! appears in the Model and the results, toggle the circularity switch on the General Assumptions tab to ON and then OFF to address the problem. This switch sets all interest expenses to zero when turned ON.
- If any changes are applied to the assumption inputs in the model, toggle through the Scenario Switch on the General Assumptions tab to Base, Best and Worst Case so that the Summary tab Scenario Analysis Graph is updated concurrently.
- All blue font in the model are hardcoded inputs, black font is calculation, red font is the references to the blue inputs on the Assumptions tabs, and any orange cells are values sourced from Refinitiv.