Not WACC, probably more focused on what kinds of discount rates are used for what kind of companies (i.e. a gold RoyaltyCo is discounted at 5%, a copper mine at 8%, etc). Keep in mind, DCFs in mining (NAV models) project out mines until depletion (could be 30 year models) and use flat discount rates like 5%, 7%, 8%, 10% depending on the specific type of mine and stage.

More importantly, once you get the NAV value, you got to slap on a P/NAV onto it. Might wanna have a good idea of what P/NAVs most of these guys trade at - i.e. an early stage lithium project might trade at 0.3x, while a company like Barrick would trade in excess of 1x. 

Accretion dilution questions might be more focused around NAVPS A/D too, I'd assume? At the end of the day, mining M&A focuses on A/D for NAVPS, and to a lesser extent, CFPS. They don't really look at EPS at all. 

Also maybe questions around strategic rationale for mining M&A? Most commonly revolves around getting bigger scale to drive a multiple re-rate, cost synergies leading to NAVPS accretion, or a well-capitalized miner acquiring an unfunded project trading at a heavily discounted P/NAV and developing it

 
Most Helpful

Voluptates vero est occaecati expedita quia quas ut. Voluptate sit vero sunt possimus excepturi consequatur. Exercitationem animi et aliquam provident repellendus ipsam.

Career Advancement Opportunities

May 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 04 97.1%

Overall Employee Satisfaction

May 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

May 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

May 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (87) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (67) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Betsy Massar's picture
Betsy Massar
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
GameTheory's picture
GameTheory
98.9
6
kanon's picture
kanon
98.9
7
dosk17's picture
dosk17
98.9
8
CompBanker's picture
CompBanker
98.9
9
Kenny_Powers_CFA's picture
Kenny_Powers_CFA
98.8
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”