An Introduction to Modelling Metal Project Finance

An Introduction to Modelling Metal Project Finance

Areas of Study: Management

Qualifies for CMS

Qualifies for Certification

This course serves as an introduction to the critical issues associated with debt financing of mining projects, illustrated by extensive practical examples for several commodities. The course is aimed at professionals throughout the mining industry and assumes a basic appreciation of the main financial parameters of project financing.

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  • Audience Level:
  • Professional
  • Enrollment:
  • Required
  • Duration:
  • 10 hours

Course Summary

Introduction

An Introduction to Modelling Metal Project Finance serves as an introduction to the critical issues associated with the debt financing of mining projects. The aims and objectives of project financing are discussed with an overview of the steps leading up to application. The course is aimed at professionals throughout the mining industry and assumes a basic appreciation of the main financial parameters.

Logical guidelines on how to construct a preliminary level cash flow model of project finance are provided, with descriptions of the major input variables. Nickel and platinum are used as example commodities with which to demonstrate the principles of modelling project finance.

A background discussion on the technical aspects and major costs involved in developing a large-scale open pit nickel mining project is followed by a step by step guide to the development of a financial model of the project using the financial modelling software tool IC-MinEval. Similarly, background discussion on platinum mining is followed by a step by step guide to developing a financial model of an underground platinum mining project using IC-MinEval. The workbooks generated by IC-MinEval are also included as downloadable spreadsheets for each worked example.

Course Content

The course comprises 20 viewing sessions of 30–60 minutes each with supporting figures, tables, and extensive worked examples for nickel and platinum projects, plus interactive course reviews. Course duration is equivalent to approximately 10 hours of viewing content. The worked examples include fully integrated sets of the completed spreadsheet models.

Learning Outcomes

  • Recognize the theory and requirements of project finance modelling based on spreadsheets.

Recommended Background

  • A basic appreciation of the main financial parameters of mining project finance modelling.
  • A basic appreciation of spreadsheet modelling applications.

Prof. Dennis Buchanan

Dennis Buchanan is an Emeritus Professor and Senior Research Fellow at Imperial College London. Professor Buchanan has worked as a Mining Geologist in both gold and platinum mines in South Africa and had wide experience as a consultant to industry, as an expert witness and in designing and delivering short courses for industry. He works jointly between the Department of Earth Science and Engineering and the Business School at Imperial College London and will act as the Course Director.

Professor Buchanan's current research interest lies in addressing the underlying technical principles applying to mineral projects and demonstrating how these influence financial modelling. He has 36 years’ experience teaching mining geology, mineral exploration and mineral project appraisal and is responsible for the MSc in Metals and Energy Finance—a joint degree between the Department of Earth Science and Engineering and the Business School at Imperial College.

Dr. Mark Heyhoe

Dr. Heyhoe is a geologist with over 25 years' experience in the mining industry. Working initially as a resource geologist and then consultant, he then spent eight years working in the London capital markets most recently with Mirabaud Securities, where he remains a consultant. Since January 2016 he has been COO of Harvest Minerals, a Brazilian focussed fertilizer developer and producer and was responsible for taking the Arapua DANF project from initial field work to production within a year.

Prof. Tim Shaw

Professor Tim Shaw passed away on April 21st 2017, at the age of 82. He was Emeritus Professor of Mining Engineering at Imperial College having retired in 2001 after being appointed to the Chair in Mining Engineering in 1980. Prior to that he held an academic appointment at the Virginia Polytechnic Institute. He entered the academic environment after a successful career in the South African mining industry where he reached the level of Chief Consulting Engineer with the Johannesburg Consolidated Investment Company. Professor Shaw had extensive experience as a technical consultant and company director and held honorary doctorates from two Central European Universities.