As the mining industry grows and expands in the property selection and development arena, it's important that you adequately assess every possible investment and venture before you put any money into them. That's where IVRM analysis is such a priority. With IVRM analysis, also known as Integrated Valuation and Risk Modeling, you'll get a clear look at the big picture for each potential investment and expansion opportunity. Here's a look at some of the key components of a comprehensive IVRM analysis. 

Identify the Risks

The very first stage of any IVRM analysis is identifying the risks and exposures of the project. This is crucial because it gives you a clear picture of the threats to your success. Identifying every risk and assessing each of those risks with clear technical information and forecasting can set the stage for risk mitigation planning. It can also help you determine if a project is too risky for a possible reward. Take time to review this risk assessment carefully when you look at the IVRM analysis reports.

Evaluate the Investment Itself

The next step of the IVRM analysis is to assess the investment itself, with allowances for how the risk factors may affect it. This part of the analysis should include the details of the project, including tax implications, financing options, management plans, and any other key details that describe the project. This gives you a clear picture of the operational aspects of the project in conjunction with those risk factors.

Define the Financial Components

Once you've isolated the exposures and evaluated the project itself, the next step in an IVRM analysis is to formulate projections and estimates of the cash flow, equity, government, and financing aspects. You'll want to create projections that clearly assess every possibility in terms of the functional opportunities. This gives you insight into many different possibilities to help you determine if it's worth the risk.

Look at the Big Picture

Each of the components of the IVRM analysis provides you with valuable information that can contribute to the decision-making process. However, it's not until you compile all of that information together into a comprehensive analysis and complete report that you will get the big picture. Make sure that you work with an IVRM analysis provider who will summarize everything in a clear, easy-to-evaluate format so that you can make the best possible decision for your business.

These are some of the most important things to know about IVRM analysis and the process before you consider your next mining investment.