Integrated Framework for Scenario Sensitivity Analysis - SME Annual Meeting 2026

Whilst all public mineral reporting codes require classification of mineral resource and reserves according to the level of geological knowledge and confidence of the estimates, companies are not required to disclose how mineral estimates and associated cashflow projections respond probabilistically to the incorporation of different types of risk events. As the level of expectations and scrutiny of investors and stakeholders continue to increase over the years, it will be essential for companies to adopt an integrated framework for sensitivity analysis to increase corporate value through better capital allocation and reduce potential losses associated with poor investment decisions. Failure in fully capturing the impact of unexpected incidents in mineral estimates and financial modeling could be extremely harmful to the business, affecting the company’s reputation, and negatively impacting the relationship with stakeholders.