Stress Testing Modelling – Webinar for The Mining Association of Canada
- April 30, 2020
- 1:00 pm to 2:00 pm
Stress Testing is the use of financial models to test the resiliency of businesses through “stressed” situations, such as this crisis. The main purpose of Stress Testing is to plan remedying actions to put a company on a sound financial basis, and to answer questions internally, such as how to continue operations in order to be able to resurrect later, and externally from key stakeholders like lenders and investors. Key to Stress Testing is that by better understanding your business’s financials and margin for error, you can make “surgical” changes to the business that will allow you to emerge from the crisis in a strong position.
This Stress Testing webinar, presented by Sapling Financial Consultants, illustrated how to develop your own stress testing process by employing a model template that will be provided to you free of charge. Looking at a typical mining producer, we will discuss:
- How to set up appropriate scenarios, including your Base Case and Stressed Cases
- Some mitigating measures you can use to reduce cash requirements (layoffs, lender arrangements, etc.) in conversation with our panelists, PE investor/investment banker Gord Bogden of Black Loon Group, and lawyer Markus Viirland of Blakes
- How to use the model to determine the amount of cash resources you will need to make arrangements with employees, customers, lenders and investors