The course will provide delegates with a thorough understanding of:
Investment appraisal techniques.
Equity valuation by discounting dividends.
Costs of debt and costs of equity.
Impact of tax and financial distress costs.
Capital asset pricing model.
Calculating beta and the risk premium.
Measuring the required capex.
Preparing the cash flows.
Methodologies using EBIT, EBITA, EBITDA, EBITDAX.
Alternative multiple-based valuation ratios.
The valuation of flexibility.
The option to defer.
Valuing reserves in the ground using comparable.
Using the option valuation methodology for mine expansion.
Who Should Attend
The course will be of value to professionals in the following areas:
Executives and managers.
Professionals in all functions seeking to enhance their financial knowledge.
Investment and commercial bankers (especially those with a single product specialisation needing to understand alternatives).
Equity and fixed income investment managers.
Treasury managers and staff.
Company brokers and advisers.
The training course is wholly interactive and participants will be fully involved through discussion, exercises and case studies. Participants will ideally have access to laptop computers with Microsoft Excel for some of the exercises and case studies. A calculator would also be useful.
At the end of the course, participants will have a sound understanding of:
How decisions about the structure of the balance sheet are made.
How to model cash flows that are used in valuation.
The effect of the timing of cash flows on value.
What sensitivity analysis can do in developing an assessment of risk.
How to measure the cost of capital.
How valuation ratios can be used to value mineral reserves.
How to use valuation ratios when there are no earnings.
How to use comparative company financials for valuation.
How to measure beta.
How the finite life of a mining project impacts valuation.
How option valuation methodology can be used for project appraisal.
The value of the option to expand, defer or close.
The particular valuation techniques for reserve based businesses.