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May 2020

IGF Financial Model

This is a beta-stage financial model for estimating the cost of tax incentives in mining, including behavioural responses as set out in Tax Incentives in Mining: Minimising Risks to Revenue. Users are advised to read the guidance note and the Supplementary Guidance: How to Use Financial Modelling to Estimate the Cost of Tax Incentives before using this model.

The model is pre-configured for a representative medium-sized surface gold mine in sub-Saharan Africa and typical tax and royalty fiscal regime. The project assumptions are based on data from the World Bank Sourcebook and various technical reports filed with securities administrations. It can be used to examine the cost of tax incentives on the representative gold mine, but users should note that the insights gained may not apply more broadly to other projects with different commodity types, cost bases and fiscal regimes. Every mining project is unique, and financial modelling needs to reflect the specifics of the project and fiscal regime that applies to it.

The IGF has therefore released the model under Creative Commons Attribution-ShareAlike 4.0 International License (CC-BY-SA 4.0) so that users can make changes to the model to adapt it to local circumstances. The model follows the FAST Standard of financial modelling to help with transferability and to make it as easy as possible for users to make structural changes, for example, to change the mine type, commodity or fiscal regime.

Users who intend to adapt the model should first read Supplementary Guidance: How to Use Financial Modelling to Estimate the Cost of Tax Incentives to get a better understanding of the model’s architecture.