For Serra Verde Mineração, which possesses one of the largest deposits of rare earth elements on the planet, Gynga conducted a crucial study to assess the expansion of its production capacity.
In this project, our team of experts focused on developing detailed financial planning and performing a valuation to determine the financial feasibility of increasing production.
The financial model we created was meticulously designed to reflect each stage of Serra Verde's production process. This detailed approach allowed not only for an accurate analysis of the costs and revenues associated with the expansion but also provided a clear view of the potential financial impacts under different economic scenarios.
The model included critical variables such as market prices for rare earths, variable and fixed operational costs. Furthermore, the financial model was instrumental in simulating the impact of these scenarios on key financial performance indicators of the company, such as cash flow, return on investment, and net present value.
These simulations helped directors and stakeholders better understand the conditions under which the expansion would be financially sustainable and to make informed and strategic decisions.
Thanks to this detailed analysis and Gynga's expertise in finance and mining operations, Serra Verde Mineração was able to plan its expansion with greater confidence, ensuring that the decisions made maximized return on investment while minimizing financial risks.
This study not only reinforced the company's position in the rare earth market but also ensured that its growth trajectory was carried out in a strategic and financially responsible manner.
