Estimating capital and operating costs • Terminology and concept of value and valuation principles • Investment return parameters and financial ratios

Address Key Issues

Introduction to decision-making methodologies

Gain A Full Understanding

Various Methods of valuation

Key Takeaways

Through understanding of “The Process of Mining” from geology to marketing

Critically review company information

The mining industry is highly capital intensive and subject to large swings in profitability on account of the cyclic nature of commodity prices and socio-political risks. The volatility in commodity prices together with restricted labour markets and fluctuating material costs, makes the fundamental knowledge of mineral project evaluation becomes essential for all mining professionals. Managing mineral projects in this environment involve a comprehensive understanding of key principles and project drivers together with knowledge of analytical tools to make an appropriate investment decision.

 

This 3-days course provides a practical application of fundamental principles and concepts of finance and project valuation applicable to the investment decisions in the resources sector. In addition to fundamental concepts in finance, participants will obtain a detailed understanding of analytical tools, economic modelling approaches, risk assessments methods, and advanced project valuation methodologies. The process of learning will be focused on numerical modelling workshops and the valuation of actual mining operations.

 

Prerequisites: Please bring your own laptops with Microsoft Excel installed.

IN JUST 3 DAYS YOU WILL:

  • Gain insight, expertise and in-depth knowledge on various methods of mining valuation
  • Analyse and audit historical and projected financial statements
  • Enhance your valuation skills through decision-making options
  • Understand industry, country and market research on commodities
  • Develop your knowledge of the global Valuation Codes as well as procedural and reporting aspects of valuations
  • Be able to generate and support the business case
  • Gain the knowledge to be able to conduct a critical review of company information

MEET YOUR TRAINER

Our Expert Trainer has worked for some of the largest global resource companies around the world such as BHP Billiton and Rio Tinto. Over the last 30 years, he has worked across the various disciplines of the mining industry, including mining, mineral processing, marketing, feasibility studies, project management, business planning, business improvement. He also consults on areas such as valuation, due diligence, M&A and stock market listings on ASX, SGX, LSE, and TSX.

Organisations that will benefit:

  • Mining Companies
  • Energy Companies
  • Investors
  • Suppliers
  • Government Bodies & Regulators
  • Financial Advisors & Consultants
  • Banks & Investors

Who will attend:

  • Management and Decision Makers
  • Commercial Managers
  • Investment Bankers
  • Transaction Advisors
  • Mining Analysts
  • Fund and Asset managers
  • Project Appraisers and Bankers
  • Geologists and Engineers
  • Lawyers
  • Government Officials
  • Strategic and Business Planners

COURSE AGENDA

Day 1: Fundamentals ⇓

  • Geology in a Nutshell
  • Reporting Codes
  • Mining in a Nutshell
  • Mineral Processing & Smelting
  • Economic Evaluation Procedure
  • Workshop – Key Mining Input Assessment
  • Mining Capital & Operating Costs
  • AusIMM Guidelines for Capital and Operating Cost Estimates
  • Workshop – Building up Cost Model
  • Workshop – Incremental Costing for Mining Alternatives

Day 2: Modelling ⇓

  • Common Financial Terms used in Mining
  • Workshop – DCF, NPV, IRR
  • Materiality
  • Workshop – Computation of WACC
  • Workshop – Depreciation in Mining Projects
  • Workshop – Real and Nominal
  • Economic Modelling of Mining Project
  • Building Economic Model
  • Workshop: Building Models working with real projects – Coal Mine / Copper Mine
  • Protecting your Model
  • Modelling for Bulk Commodities (Iron Ore, Bauxite and Coal)
  • Case Study – understanding mining scoping studies
  • Hands-on Workshop based on an actual scoping study

Day 3: Valuation ⇓

  • Modelling for Base Metals and Gold: Gold, Copper, Lead, Zinc Projects
  • Theory and Traps
  • Case Study – understanding mining feasibility studies
  • Hands-on Workshop based on analysing an actual feasibility study
  • Valuation of Mining Projects
  • Global Valuation Codes
  • Various cost-based valuation techniques
  • Valuation of Farm-in, Joint Ventures, and mining options

For further information please call: +44 (0)1372 308547

or click on the brochure tab below

BROCHURE

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