Calculator
Mining Contract Cash Flow Calculator
A mining contract ties up the mobilisation cost plus each month of wages, fuel, plant and supplier costs carried before the first claim is paid. Longer payment terms and retention deepen that gap, so enter the contract figures below to see the peak cash requirement and when the contract pays it back.
Month by month contract cash flow
| Month | Cash out | Cash in | Retention held | Cumulative position |
|---|
Payment days are divided by 30 and rounded up to whole months. The model assumes each claim is submitted at month end, costs are paid in the month the work is delivered, every claim is paid in full less retention, and all retention is released in 1 lump sum. Estimates only: allow extra headroom for certification delays, disputed claims and unexpected site costs.
Want these numbers checked? Send the result across and we'll tell you what a lender would make of it. No meeting required.
See the contract gap before you commit
The gap starts with mining contract mobilisation, then changes as monthly costs leave, progress claims arrive and retention accumulates. Our guide to progress claims and retention explains that claim cycle in more detail.
The result is a planning estimate, not a facility limit. Invoice finance for mining contractors may help bring forward eligible claim cash, while equipment finance calculations can help separate plant repayments from the contract working capital requirement. See our mining services finance in WA page for how the wider structure can fit together for contractors in Perth and across WA.
Frequently asked questions
How much cash does a mining contract tie up before it pays?
It ties up mobilisation plus the cost of delivering each month until the first claim is paid. Payment terms and retention can keep the peak gap open even after claim payments begin.
How are payment terms converted into months?
The calculator divides the payment days by 30 and rounds up to the next whole month. A 45 day term is modelled as a 2 month delay after claim submission.
How does retention affect contractor cash flow?
Retention reduces every claim payment and accumulates as cash held by the client. This calculator releases the full balance in 1 lump sum after the final claim.
What does peak funding gap mean?
The peak funding gap is the most negative cumulative cash position in the model. It shows the largest shortfall the contract creates before later receipts restore cash.
Does this calculator include claim disputes or delays?
No. It assumes every monthly claim is accepted at the value entered and paid on the stated terms. Allow extra headroom for certification delays, disputed quantities and unexpected costs.
Want the funding gap checked against the contract?
Enquire now