An Introduction to Mining Investment - Understanding the Risks

An Introduction to Mining Investment - Understanding the Risks

Areas of Study: Management

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This is an in depth presentation of mining investment risk, so that those relatively new to mining can identify and evaluate the risks involved, and hence make informed decisions about how and when to invest in a mine or mining company.

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  • Audience Level:
  • New to Mining
  • Enrollment:
  • Required
  • Duration:
  • 15 hours

Course Summary

Note: The title of this course was changed on October 15, 2009 from the original Mining Investment - A Risky Business.

Who Will Benefit from this Course?

This course is intended for those with little knowledge of mining, but a desire to learn enough to make wise and successful investment moves in public stock markets where mining shares are traded. This course is also intended for seasoned mining stock investors who wish to take a fresh look at the basics of investing in mining stocks with a view to polishing up on, and possibly revising, strategies and investment portfolios.

The Good News and the Bad News

The good news is that many people have made lots of money investing in mines. The bad news is that many have lost money, or had to wait many years for a fair return on invested capital. The basic reason is that mining is a risky business. There are multiple risks involved at all steps along the way through finding an ore body, confirming the extent of resources, permitting a new mining operation, constructing the support facilities, operating the mine, and finally closing it so that it is not a perpetual financial drain on the owning company. There are also related risks from mining scams and investment "bubbles."

What this Course Can Do for You

In this course, the author does three main things:

  • describe the various phases of mining so that you can understand and evaluate the risk of investing in a mine that is involved in one or more of the phases of mining;
  • discuss technical, social, political, and financial factors that make one mining investment better or worse than another; and
  • present stories that highlight the risks and rewards of investing in mines.
The course is arranged so that you, as somebody probably relatively new to mining and investment in mining, can identify and evaluate the risks involved so you can make informed decisions about how and when to invest in a mine or mining company.

Course Content

The presentation follows a light, easy-to-read format based on the author's considerable experience of the mining industry. The course comprises 46 sessions, each of less than 30 minutes of learning content, plus interactive reviews that confirm your achievement of learning objectives. The total duration of the course is approximately 15 hours.

Learning Outcomes

  • Identify the risks involved in a mining venture.
  • Review risks prior to investing in a mine or mining company.

Jack Caldwell P.E., MS.(Eng.), LLB

Jack Caldwell, P.Eng, has a B.Sc. in Civil Engineering, an M.Sc. (Eng.) in Geotechnical Engineering and a post-graduate law degree. He has over 35 years engineering experience on mining, civil, geotechnical and site remediation projects. He has worked on numerous projects throughout southern Africa, Europe, Latin America, Canada, and the United States. His project experience includes:

- mines and waste disposal facilities - design, construction supervision and reclamation of tailings impoundments, mine rock dumps, heap leach pads, landfills and radioactive waste disposal units;

- hazardous and radioactive waste site remediation - senior management and technical consultant

- landfills - design, construction, operation and closure with special focus on liners, covers, and soil reinforcement.

In addition, Mr. Caldwell has been the lead specialist for various geotechnical and civil engineering projects in Southern California. Mr. Caldwell has written many engineering reports, proposals, and technical papers. He is the lead author of the book, Principles and Practice of Waste Encapsulation, on the design of waste disposal facilities for radioactive and hazardous wastes.