Counterfactual Simulation of Corporate Costs for Public Companies

Bell, Peter (2025): Counterfactual Simulation of Corporate Costs for Public Companies.

Abstract

This paper shows ways to simulate financial economic models for a mining exploration company. Two types of data are used: a time series of annual financial statements for a particular company and the stock exchange listing requirements for mining exploration companies in general. I describe how Kermode Resources Ltd.'s audited financial statements reflect different eras of leadership within the company over time and show how key corporate costs can vary as leadership and strategy change. I show a toy model of the costs of running a public company based on the constraints from the TSX Venture Exchange as a hypothetical company running on the edge of the listing requirements. I compare the bare-minimum cost profile of the hypothetical company under the listing requirements with similar corporate costs observed in Kermode Resources' financial statements over time.

• Item Type: MPRA Paper
• Language: English
• Keywords: Engineering Economics, Mining, Royalties, Finance
• Subjects: C - Mathematical and Quantitative Methods > C0 - General; G - Financial Economics > G0 - General; L - Industrial Organization > L7 - Industry Studies: Primary Products and Construction > L72 - Mining, Extraction, and Refining: Other Nonrenewable Resources

References

Bell, Peter N, 2014. "A Method for Experimental Events that Break Cointegration: Counterfactual Simulation," MPRA Paper 53523, University Library of Munich, Germany. https://mpra.ub.uni-muenchen.de/53523/

Bell, Peter N, 2015. "Mineral exploration as a game of chance," MPRA Paper 62159, University Library of Munich, Germany. https://mpra.ub.uni-muenchen.de/62159

Bell, Peter, 2025a. "Financial Ratios for Mining Exploration Public Company Kermode Resources, 2005-2024," MPRA Paper 123791, University Library of Munich, Germany. https://mpra.ub.uni-muenchen.de/123791/

Bell, Peter, 2025b. "Mining Exploration Business Valuation Simulations with Global VMS Database," MPRA Paper 126072, University Library of Munich, Germany. https://docs.google.com/document/d/1BgN5AQSI8YGKlyq_1Ds_Y8UrKYcSVfFTohiIcGwdyIk/

Kermode Resources Ltd, 2025. "KERMODE RESOURCES LTD. CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED JANUARY 31, 2025," SEDAR+. https://www.sedarplus.ca/csa-party/records/document.html?id=df9bceaf405accda05a9b55923b97f14353f19e22a6b3d8151495003e7756527

TSX Venture Exchange, 2010. “POLICY 2.5: CONTINUED LISTING REQUIREMENTS AND INTER-TIER MOVEMENT,” https://www.tsx.com/en/resource/425

TSX Venture Exchange, 2021. “Notice to Issuers: Re: Temporary Relief of $0.05 Minimum Pricing Requirement – Further Extension,” https://www.tsx.com/en/resource/2776

TSX Venture Exchange, 2023. “POLICY 1.3: SCHEDULE OF FEES,” https://www.tsx.com/en/resource/2937/