Cash Flow Evaluations for Mineral Projects and Operations

Cash Flow Evaluations for Mineral Projects and Operations

Areas of Study: Management

Qualifies for CMS

Short Course Short Course
  • Audience Level: Professional Tool Tip
  • Dates: 16 - 17 October 2017 Tool Tip
  • Early Bird: Tool Tip
  • Enrollment: Included Tool Tip
  • Registration Fee: Tool Tip
  • Location: Toronto, ON, Canada Tool Tip
  • Duration: 2 days
  • CEUs: 1.6 (16 PDHs) Tool Tip

Course Summary

Summary

During this 2-day course, participants will become familiar with the concepts of a cash flow and discounted cash flow (DCF), as well as their application to mineral projects.

The course is structured as an interactive working session, in which the instructor and participants will work together to develop a working cash flow evaluation model, step-by-step. (A laptop computer with Excel and a working knowledge of Excel are prerequisites for the course.)

By the end of the course the participants will have developed:

  • A working cash flow model suitable for the evaluation of a new project.
  • An understanding of DCF evaluation metrics.
  • An understanding of discount rates and the time value of money.
  • An evaluation of a steady-state operation.
  • An evaluation of an expansion project.
  • An evaluation of a cost flow to choose between several operational alternatives.
  • A sensitivity analysis with tables and graphs.

Pre-Course e-Learning

Prior to the course, registered delegates have access to the online e-learning material consisting of an introductory course titled Economic Evaluation and Optimization of Mineral Projects.

Certificate in Mining Studies

This course qualifies for two days of short course credit for the Certificate in Mining Studies (CMS), a continuing education program of accredited short courses, webcasts and online courses for lifelong learning in mining, supported by University of British Columbia and University of Arizona. more details »

Continuing Professional Development (CPD)

Registered participants who attend the entire short course and complete an evaluation at the end of the course will receive a Certificate of Attendance, confirming the Professional Development Hours (PDH)/Continuing Education Units (CEU) earned. Please confirm with your employer and/or professional association that this course qualifies for CPD.

Who Should Attend?

The course is appropriate for geologists, engineers, mining analysts, accountants, and financial persons with an interest in evaluating mining projects and properties.

Lawrence Devon Smith

Larry Smith is a mining engineer with over 40 years experience in economic evaluations and project engineering for mining, metallurgical, and industrial projects. He holds a B.A.Sc. from the University of Toronto and an M.Eng. Mining from McGill University.

Larry is the principal consultant at LDSA. He has worked as Director Project Evaluations at Barrick Gold and has held similar positions with BHP-Billiton Base Metals, Rio Algom, SNC-Lavalin, Kilborn, Inco, and Vale.

His evaluation experience includes economic evaluations, targeting and ranking studies, scoping studies, optimization studies, pre-feasibility and feasibility studies, risk assessment, and due diligence work for banks and mining companies. Larry has published a number of papers on mineral project evaluation, discount rates, and risk assessment, and is considered an expert in these fields.

Larry teaches mineral project evaluation and mineral economics at the University of Toronto/Canada, Schulich School of Business at York University/Canada, as well as in-house courses and seminars. He also presents "Introduction to Mining" workshops for investors, management, finance personnel, lawyers, and indigenous peoples.

Larry has been on the executives of the Canadian Institute of Mining (CIM) Toronto and the CIM Mineral Economics Society (MES). He is the recipient of the CIM Robert Elver award for Mineral Economics, a Fellow of CIM, and a CIM Distinguished Lecturer.

Provisional Schedule

Instruction will take place over 2 days from 8:30am to 5:00pm each day, with a lunch break from noon to 1:00pm and 15 minute snack breaks mid-morning and mid-afternoon.

The course includes following topics:

Part 1

  • Cash Flow components
  • Cash versus Accounting
  • Examining a cash flow
  • Exercise - Building a basic cash flow

Part 2

  • Time value of money
  • Basic discounted cash flow (DCF) metrics
  • Discount rate determination
  • Exercise – Building the DCF metrics

Part 3

  • Basics of production schedules
  • Basics of price and revenue
  • Basics of operating costs and capital costs
  • Exercise – adding production, price, operating costs and capital costs to the cash flow

Part 4

  • Basics of royalties
  • Basics of taxes
  • Exercise – adding royalties and taxes to the cash flow

Part 5

  • Evaluation of a steady-state operation
  • Exercise – adding DCF metrics for a steady-state operation

Part 6

  • Evaluation of an expansion project
  • Incremental versus differential cash flows
  • Exercise – Developing adding DCF metrics for a steady-state operation

Part 7

  • Evaluation of a cost flow
  • Incremental versus differential cost flows
  • Exercise – Developing a cost flow comparison of two or more alternatives

How to Register

To register yourself, click the ‘Register Now’ button and complete the online registration form.
To register on behalf of someone else, or to register groups of 2 or more, please contact us; discounts may apply.

Questions? Please contact EduMine: +1 604 683 2037 or [email protected] and we will get back to you during regular business hours, Monday - Friday, 8:00am to 5:00pm Pacific Time.

Participants are expected to have their own laptop computers available for this course.

Fees

The fee covers the lecture, access to Pre-Course e-learning, a certificate of attendance, and catered breakfasts and lunches including light refreshments. The fee does not cover accommodation.

Early Bird: there is a 10% discount if you register at least 30 days prior to the course start date. A 10% discount is offered for groups of 3 or more OR if you provide your Annual EduMine subscription User ID at time of registration. The maximum discount that can be applied is 20%.

Venue

The course will be held at the DoubleTree by Hilton Toronto Downtown which is located at 108 Chestnut Street in downtown Toronto.

Hotel Accommodation

If you need to make hotel reservations, we recommend the following hotel. When making reservations, be sure to ask for the “InfoMine corporate rate”, or book through the one-click reservation link noted below.

Situated at the crossroads of Toronto’s financial, research and entertainment districts, the newly refreshed DoubleTree by Hilton Toronto Downtown offers a quiet retreat set amongst a vibrant urban locale. With 486 guestrooms and suites the hotel is ideally suited for modern business professionals and leisure seekers alike. You won’t even need to leave the hotel lobby to enjoy some of Toronto’s finest dining experiences. Hemispheres Restaurant & Bistro presents an eminently delicious menu with a tranquil backdrop, while the award winning Lai Wah Heen offers the height of Chinese cuisine in an exquisite setting. DoubleTree by Hilton Toronto Downtown provides easy access to Pearson International Airport, and is equipped with an newly refreshed indoor pool and expanded Precor fitness centre, business centre, and wireless high speed internet access.
The Hotel’s website is: http://www.torontodowntown.doubletree.com
Book your room online through our personal InfoMine corporate rate link (room rate includes internet access).

Terms and Conditions

By submitting a short course registration form, you agree to pay the associated fees in full before the course start date.

Cancellations

A 10% administration fee will be levied for cancellations made up to two weeks prior to the start of the course. Cancellations thereafter will be liable to the loss of the full fee. Notice of cancellation must be given in writing by letter or fax and action will be taken to recover, from the delegates or their employers, that portion of the fee owing at the time of cancellation.

EduMine reserves the right to cancel an advertised course at short notice. It will endeavour to provide participants with as much notice as possible, but will not accept liability for costs incurred by participants or their organisations for the cancellation of travel arrangements and/or accommodation reservations as a result of the course being cancelled or postponed. If a course is cancelled, fees will be refunded in full. EduMine also reserves the right to postpone or make such alterations to the content of a course as may be necessary.