Independent benchmarking of mining projects across Canada, Chile, the United States, Mexico, Australia, and Pakistan highlights significant differences between operator-reported and independently derived cost estimates.
Costmine Intelligence, a leading provider of mine cost data, benchmarking analytics, and independent project evaluation solutions for the global mining industry, today released findings from a comparative analysis that highlights the importance of independent cost benchmarking when evaluating mining project economics across multiple jurisdictions.
Figure 1: WOODY Capex & Opex Estimates vs. Company Technical Studies
The analysis compared economic assumptions presented in company- and consultancy-authored technical studies against independent cost estimates generated using Costmine’s extensive proprietary cost databases, industry-recognized benchmarking methodology, and advanced analytical models. The results identified notable differences between operator-reported forecasts and independently derived benchmark estimates for both operating and capital costs.
Across the projects analyzed, operator-reported operating cost forecasts were found to be, on average, 39% lower than independently derived benchmark estimates. Capital expenditure estimates also differed, with independent benchmark figures averaging 26% higher than reported project estimates, although capital cost variances were more mixed across individual projects.
Comparative Findings
| Metric | Independent Benchmark Variance |
|---|---|
| Operating Cost (Opex) | 39% higher on average than operator-reported forecasts |
| Capital Cost (Capex) | 26% higher on average than operator-reported estimates |
| Jurisdictions Reviewed | Canada, Chile, United States, Mexico, Australia, Pakistan |
| Methodology | Independent benchmarking using Costmine proprietary cost models and databases |
The findings reinforce the growing importance of independent cost validation as mining projects become increasingly capital intensive and investors demand greater transparency around project economics. Costmine’s benchmarking approach provides stakeholders with an objective reference point for evaluating development assumptions, cost forecasts, and execution risks.
Costmine’s analysis utilized technical parameters disclosed in NI 43-101 reports and comparable international technical studies, including mining methods, processing methods, reserves, production rates, and throughput assumptions. These inputs were evaluated using Costmine’s proprietary cost databases and modelling systems to generate independent estimates of capital costs, operating costs, and project economics.
To improve comparability, Costmine excluded off-site infrastructure costs such as rail, power, and port facilities where applicable. All studies were escalated to 2025 dollars using Costmine’s Mining and Milling Cost Indices.
“If operating cost assumptions are materially understated, project economics can appear significantly stronger than they ultimately prove to be. Operators and investors need access to reliable, independent benchmarks when evaluating what large-scale mining projects will cost to build and operate. Objective cost analysis helps identify potential risks early and supports more informed investment and development decisions.”
— Michael Sinden, Managing Director, Costmine Intelligence
While the analysis identified recurring differences between reported and independently derived cost estimates, Costmine noted that no single factor explains the observed variances. Differences in study assumptions, project scope, inflation, timing, and market conditions may all contribute to the gaps observed.
“Investors need to understand that development studies are not simply technical documents. They are often commissioned to support project advancement and financing objectives. Independent benchmarking provides stakeholders with a valuable second opinion on project assumptions, helping them better understand risks, opportunities, and the potential impact of changing market conditions.”
— Gordon Sobering, Head of Cost Analysis, Costmine Intelligence
Projects in some jurisdictions showed relatively modest differences, while others demonstrated substantially wider variances between operator-reported forecasts and independently derived benchmark estimates. According to Costmine, the largest discrepancies were often observed where significant periods had elapsed between completion of technical studies and independent cost benchmarking.
As capital markets continue demanding greater transparency and accountability from mine developers, independent benchmarking tools such as Costmine’s WOODY platform are becoming increasingly valuable for evaluating project viability, financing decisions, and long-term economic performance.
About Costmine Intelligence
Costmine Intelligence is a leading provider of mine cost data, analytics, and independent cost modelling solutions for the global mining industry. For decades, Costmine has been trusted by engineers, analysts, investors, lenders, consultants, and project developers worldwide for its comprehensive cost databases and benchmarking expertise. Through its WOODY platform, Costmine combines proprietary cost data, advanced modelling methodologies, and independent analysis to help stakeholders evaluate project assumptions, identify risks, and make more informed investment decisions.
Media Contact
Olivia Spilker
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Website: www.costmine.com
Email: support@costmine.com
Phone: 509-328-8023
