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.

1

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.

2

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.

3

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.

4

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.

5

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.

6

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.

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

Group results do not match external financial reports

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

Portfolio comparisons are noisy or hard to interpret

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

Model becomes too large or complex

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

Related guides

• Build a Multi Division Model

• Build a Multi Entity Group Model

• Imported Variable Behaviour

• Viewing Scenario Differences