> For the complete documentation index, see [llms.txt](https://help.modelreef.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.modelreef.io/use-cases/mining-energy-and-natural-resources/multi-site-resource-consolidation.md).

# Multi-Site Resource Consolidation

This use case explains how to consolidate production, costs, cashflows and valuations across multiple mines, wells and resource sites in Model Reef.

You will:

* Represent each asset as a branch with its own production and cost model.
* Group assets by commodity, region or business unit in the branch tree.
* Add central overheads, group funding and corporate structures.
* Produce consolidated P\&L, Balance Sheet, Cashflow, Cash Waterfall and valuation outputs.

The goal is to support portfolio level decision making while retaining site level transparency.

## When to use this pattern

Use this pattern when:

* You operate or invest in multiple mines, wells or resource projects.
* You need consolidated reporting at region, commodity and group level.
* You compare assets and portfolios in different price and volume scenarios.
* You need a single model for board, investor and lender communication.

It builds on:

* Mine or Well Production Forecasts
* Capex & Equipment Lifecycle Model
* Commodity Price Sensitivity
* Build a Multi Entity Group Model

## Architecture overview

Multi-site resource consolidation uses:

1. Branch structure
   * Group root branch.
   * Site branches for each mine, well or project.
   * Optional intermediate branches for commodity or region.
   * Central overhead and financing branches.
2. Site level models
   * Production, revenue and cost structures per site.
   * Site specific capex, rehabilitation and funding.
3. Central structures
   * Group debt, cash and equity.
   * Corporate overheads and shared services.
   * Hedging policies represented at group level where relevant.
4. Reporting and dashboards
   * Site, region and group level views.
   * Scenario comparisons across the portfolio.

{% stepper %}
{% step %}

### Design the portfolio branch tree

Define a branch tree that reflects operating and reporting structures, for example:

* Resources Group
  * Region - Americas
    * Mine - Copper A
    * Mine - Gold B
  * Region - Asia Pacific
    * Mine - Coal C
    * Field - Gas D
  * Projects
    * Project - Lithium E
  * Central Overheads
  * Group Funding

Alternative structures might group by commodity first, then region. The key is to choose a layout that matches how performance is managed and reported.
{% endstep %}

{% step %}

### Attach site level production and financial models

Within each site branch, implement:

* Mine or Well Production Forecasts for that site.
* Capex & Equipment Lifecycle Model for site assets.
* Site specific Opex and staff structures.
* Site level rehabilitation provisions if appropriate.

Ensure consistency of naming and categories across sites, for example:

* Revenue - Product X - Site Y.
* Opex - Mining - Site Y.
* Opex - Processing - Site Y.
* Opex - Site G\&A.
* Debt - Site Level Facility - Site Y.

Consistency makes it easier to compare sites and consolidate across them.
{% endstep %}

{% step %}

### Model central overheads and group funding

Create branches or variables for:

* Corporate and regional overheads, such as head office, legal, finance and exploration teams.
* Group debt facilities that sit above individual sites.
* Equity injections, distributions and buy backs at group level.
* Group cash, investments and reserves.

This allows you to distinguish:

* Pure operating performance at site level.
* Impact of corporate structures and funding at group level.

You may also represent intercompany funding structures in a simplified way, while ensuring that consolidated outputs remain correct.
{% endstep %}

{% step %}

### Build consolidated reports and dashboards

Using Model Reef reporting and dashboard tools, create views that show:

Site level views

* P\&L per site, including production and cost breakdowns.
* Site level contribution to group EBITDA and cash.
* Operating metrics such as unit cash costs and margins.

Region or commodity level views

* Aggregated revenue and cost by region or commodity.
* Production tonnages and product mix.
* Regional or commodity level margins and cashflows.

Group level views

* Consolidated P\&L across all sites and corporate structures.
* Balance Sheet including group debt and equity.
* Cashflow Statement and Cash Waterfall.
* Valuation metrics for the group and optionally per site.

Filters and branch selections allow users to move from site to region to group views smoothly.
{% endstep %}

{% step %}

### Use scenarios for portfolio and capital allocation decisions

Clone the consolidated model into scenario models to test:

* Different asset portfolios, including acquisitions and divestments.
* Changes to capital allocation between sites and projects.
* Alternative production, price and cost environments.
* Different funding strategies at group level.

In each scenario, adjust:

* Which site branches are enabled, added or removed.
* Production and cost drivers per site.
* Capex, funding and hedging assumptions.
* Corporate overhead and structure assumptions.

Compare scenarios using:

* Group and site level cash and valuation metrics.
* Debt capacity and covenant headroom.
* Concentration of risk by commodity, region or asset type.
* Returns on capital for different portfolio configurations.
  {% endstep %}

{% step %}

### Support board, investor and lender reporting

Because the same model underpins site, region and group views, you can:

* Provide consistent base, upside and downside scenarios across all stakeholders.
* Reuse charts and tables across internal and external presentations.
* Demonstrate how portfolio composition and funding choices drive group outcomes.
* Use the Valuation Engine to connect cashflows and capital allocation decisions to value.

Model Reef does not replace specialised reserve, resource or technical reporting, but it provides a compatible financial overlay.
{% endstep %}
{% endstepper %}

## Check your work

* Site models reconcile to local management forecasts or historical performance when calibrated.
* Central structures match the latest group financial statements.
* Branch structure supports the required management and governance views.
* Scenario results remain interpretable and explainable to non modelling stakeholders.

## Troubleshooting

<details>

<summary><strong>Group results do not match external financial reports</strong></summary>

Reconcile opening balances, central costs and financing, and confirm that all relevant site branches are enabled and correctly configured.

</details>

<details>

<summary><strong>Portfolio comparisons are noisy or hard to interpret</strong></summary>

Standardise key metrics across sites and use normalised measures such as margin per tonne or per unit of capacity in addition to absolute measures.

</details>

<details>

<summary><strong>Model becomes too large or complex</strong></summary>

Aggregate smaller or less material sites and keep detailed site level modelling for large or strategically important assets only.

</details>

## Related guides

* [Build a Multi Division Model](/how-tos/core-modelling/build-a-multi-division-model.md)
* [Build a Multi Entity Group Model](/how-tos/core-modelling/build-a-multi-entity-group-model.md)
* [Imported Variable Behaviour](/help/drivers-variables-and-timing/imported-variable-behaviour.md)
* [Viewing Scenario Differences](/syntax/scenario-syntax/viewing-scenario-differences.md)