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  Mineral Economics, Finance Evaluation and Risk Assessment

23-26 June 2014, Johannesburg

Overview

The global mining industry is extremely capital intensive but subject to large swings in profitability due to the high volatility of prices and political risk. Managing mineral enterprises in this environment requires a comprehensive understanding of the economic concepts and analytical tools appropriate to the extractive industries for establishing asset values and guiding investment decision making. Unfortunately formal education in this mineral economics sector is lacking on a global scale and professionals often learn many of the important aspects on the job or by trial and error. Standard business analytical tools are often not understood and misapplied. The workshop is designed to address these issues by providing mining industry participants with a detailed overview of the practical application of mineral economics with particular focus on financial valuation of assets.

This course provides an overview of the field of mineral economics and introduces key economic theories and methodologies as adapted to mineral commodity analysis. You will obtain an understanding of the analytical tools and techniques used in the market and economic assessment of mineral resource extraction projects and operations. The course also addresses in detail the financial analysis and risk assessment methods utilized in the natural resource industries to value mineral assets and establish transaction values. Participants receive a comprehensive understanding of the application issues, limitations and sometimes misuse of these techniques in mineral asset economic analysis. The focus is on the practical application of economic concepts and financial tools to investment decision making and management in the mineral resources sector.

Course Highlights

■ Key mining and mineral finance terminology, processes and techniques
■ Financial and commercial drivers of the mining sector
■ Mining finance evaluation tools
■ How to evaluate mining projects
■ How to raise funds/finance mining projects
■ Recent development in advanced project evaluation methodologies
■ Construction of detailed cash flow models to value mineral assets
■ The concept of resource scarcity and current regulatory aspects of defining reserves
■ Price Forecasting methodologies for mineral prices and current industry practice
■ Practical issues and cautions with methods for determining project discount rates
■ Modern Risk Analysis Techniques employed by the mining industry -- their benefits and limitations

Benefits of Attending

UNDERSTAND mining finance from a global perspective
LEARN how to assess the viability of mining projects
DISCOVER practical ways to finance mining projects from greenfields exploration through to full-scale mining operations
GAIN an appreciation of mining costs, and the decision-making process to increase mine profitability
IDENTIFY project and financial risk using sensitivity and scenario analyses and Monte Carlo simulation
BALANCE risk and returns in line with corporate risk profiles

Teaching Methodology

The course will be multi module lecture format. Quantitative models involving real-world problems will be used to demonstrate analytical tools and teaching points, with case studies and a capstone asset valuation exercise in teams.  Participants should bring laptop computers for hands-on examination of valuation methods, templates of which will be provided for future reference and use. Course notes and several key reference documents will also be provided, as well as guidance on other key informational resources presently available to further their understanding and research activities.

Pre-Course Questionnaire

We would like to customise the workshop based on your specific needs. Pre-Course Questionnaire will be sent prior to the workshop for analyse in advance and to be addressed during the course.

Course Certificate

Upon the successful completion of this course, you will receive a Certificate of Completion bearing the signatures from both the Course Director and the Course Organiser. This Certificate will testify your endeavour and serve towards your professional advancement.

 

Endorsers

The Geological Society      

Media Partners

Realnews Africa Trade Corporate Africa Construction Review Online
African Mining Brief Mining CSI  Creamer Media Engineeringnews
NRG Expert Energy China Forum SZ Energy
The Energy Info /EnergyUpdate MBendi Hedge Connection
Global Business Reports Petrofinder ECPD EnergyAsia