While the intrinsic value of a mineral project is still a key consideration, understanding the interrelationship between technical and financial risk to truly understand the long-term value of an asset, helps companies make better investment (or divestment) decisions. Companies that can secure debt finance for both development and acquisition of advanced projects have greater strategic flexibility. Understanding how debt impacts the valuation of projects allows for an objective approach to determining levels of gearing; this is relevant to both the investment banking and mining communities. This course is designed to address these issues.
Who Should Attend
The course will be of interest to mining analysts, fund and asset managers, engineers responsible for development, planning and exploration
Delegates will gain knowledge and skills to:
- know how to build a financial model using realistic assumptions and inputs such as a rate of production appropriate to the size of the resource, and associated capex and opex costs using CostMine data.
- Understand the circumstances in which it is appropriate to set up models based on a straight discount rate basis vs a model that includes debt
- Be able to analyze the financial performance indicators generated by the IC-MinEval software outputs and indicate the valuation that could be placed on the asset based on the output.
- Be able to undertake a sensitivity analysis on key technical and financial variables. Attention will be given in the course to why sensitivity on variables such as mining dilution should not be considered.
- Appreciate the role of financial models in identifying those technical variables that have the greatest impact on financial performance