BBA

Mining due diligence services

As an independently owned Canadian company, BBA provides impartial advice that is widely accepted by the international banking and investment community and a broad range of mining clients. Whether you require a rapid fatal flaw review to evaluate a potential project acquisition, a critical audit of ore reserves or a more in-depth due diligence study to support project financing, BBA tailors its due diligence assessments to support our clients' assurance and decision-making needs.

Respecting international disclosure standards, covering a wide geographic spread and representing the majority of mineral commodities, BBA's due diligence teams follow a systematic process to provide opinions on the technical aspects of the target mining project, including the overall project design as well as specific discussion of key project characteristics, risks and opportunities. Operating and capital costs are reviewed and benchmarked with similar operations in BBA's up-to-date project database.

For specific technical or commodity expertise, BBA has access to an international network of associates and partner organizations that can be leveraged to broaden our experience and global reach. In addition to full multidisciplinary due diligence reviews, BBA can also undertake limited-scope mandates where only specific disciplines are required or act as subject matter experts to support mining-related litigation and arbitration cases.

 

MINING PROJECT DUE DILIGENCE CHECKLIST

 

PROPERTY INFORMATION

 

Location, topography and climate

Land ownership and royalties

Property history and current status

 

GEOLOGY AND RESOURCES

 

Geology and mineralogy

Drilling, sampling and assaying

Evaluation techniques

Mineral resources estimate

 

MINING

 

Mineral reserves estimate

Cut off grade, recovery and dilution

Hydrogeology and geotechnical parameters

Mining method, rate and plans

Mining and material handling equipment

Historical and forecast production

Consumables

Mining capital and operating cost estimates

 

PROCESSING

 

Ore sampling and testwork

Metal/mineral recovery and grade

Primary processing method and rate

Smelting and refining

Process equipment

Historical and forecast production

Consumables

Processing capital and operating cost estimates

 

INFRASTRUCTURE

 

Industrial infrastructure facilities

Roads, pipelines, railways, ports

Utilities and telecommunications

Infrastructure capital and operating cost estimates

 

MANAGEMENT AND LABOUR

 

Management organization requirements

Labor requirements

Health, safety, training and security

PRODUCTS, MARKETS AND SALES

 

Primary products and by-products

Markets and volumes

Product pricing and sales

 

ENVIRONMENTAL AND PERMITTING

 

Permit list

Environmental impact (ESIA)

Water and tailings management plans

Tailings and waste management facilities

Compliance and reclamation costs

 

FINANCIAL ISSUES

 

Taxes and royalties

Fees and licences

Working capital

Financing capability

 

DEVELOPMENT COSTS AND SCHEDULE

 

Development cost estimate, schedule and mine life

Execution and construction methodology

Risk and contingency analysis

Production ramp-up plan and schedule

 

POLITICAL AND SOCIAL CONSIDERATIONS

 

Economic benefits and costs

Government considerations

Country risk

 

PROJECT ECONOMICS

 

Economic parameters

Discount rate determination

Cash flows

Investor returns (NPV, IRR, ROI)

Sensitivities