• Mining Consulting
  • Specialised Software
  • Research & Development
  • Training

Metal Market Modelling

Metal Market Modelling

Commodity metal prices are one of the most important sources of uncertainty in a mining venture, and are central to the mineral investment decision having a significant impact on the financial performance of companies in the mineral industry.

Some of the main reasons for which mining companies and firms should, by some means, analyse and model future metal prices, to assist them in their forward planning, are:

  • Present and past price movements shape expectations about future prices and profits from exploration and mining.
  • Prices influence mining revenues and the cost of capital for financing various operational strategies such as expansions, developments and exploration, among others.

At ROMPEV we analyse, model and assess the effect of future price uncertainty in project economics providing both a specialised consulting service and the appropriated tools for metal price forecasting.
ROMPEV ’s Metal Price Analysis and Modelling service covers:

  • Metal market premium analysis
  • Chart historical and live market commodity (metals and non-metal) data
  • Data science of market information for metal prices, i.e., historical, spot, future and forward prices. The analysis includes:
    • Price trend analysis and estimation
    • Price Volatility analysis and estimation
  • Model and forecast (precious and base metal) metal prices as both continuous (Monte Carlo simulation) and discrete (Binomial lattice) fashion
  • Developing and deploying applications to production environments, desktops, servers and the Web