Mining break-even webinar slides
The slides from this session.
Break-even as a commercial sensitivity
This recorded session shows how break-even analysis strengthens a mining project model. It identifies the minimum operating and financial thresholds the project needs to be viable, which supports more commercial decisions and benchmarking across projects.
Break-even analysis works as a commercially focused sensitivity: it shows how resilient the project is in terms decision makers recognise. It also lets equity holders, lenders and operators each see the project from their own side, and makes projects easier to compare on risk and return.
What you will learn
Break-even indicators
- Return: the minimum internal rate of return (IRR) equity investors need
- Debt repayment capacity: the ability to meet principal and interest under stressed conditions
- Minimum cash flows: enough liquidity for operations and contingencies
Operating parameters that drive break-even
- Cut-off grade: the lowest ore grade that is still economic
- Commodity price floor: the minimum price that keeps the project profitable
- Production volume: the output needed to cover fixed and variable costs