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: Unscheduled Tool Tip
  • Early Bird: Tool Tip
  • Enrollment: Included Tool Tip
  • Registration Fee: Tool Tip
  • Location: Vancouver, BC, 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, University of Arizona and University of Concepción. 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 edumine-support@infomine.com 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 full fee for the two day program is CAD 1,650 + tax. The fee covers the lecture, a comprehensive set of course notes, access to Edumine 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 5 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 UBC Robson Square facility which is located in the heart of downtown Vancouver and only 5 to 10 minutes walking distance from the recommended hotels listed below.
For more details see: http://robsonsquare.ubc.ca/find-us/.

Hotel Accommodation

If you need to make hotel reservations, we recommend the following hotels. Each hotel is within a 5-15 minute walking distance of the course venue and provides convenient access to transportation and 'Canada Line' rapid transit to/from Vancouver International Airport.

When making reservations make sure to ask for the "InfoMine corporate rate".

  • Executive Hotel Le Soleil, named by Resorts & Great Hotels Magazine as "One of the Top 100 Hotels in the World," has been recipient of the American Automobile Association's (AAA) 4-Diamond rating since its opening. Executive Hotel Le Soleil differentiates itself with a unique mixture of stylish sophistication and old world elegance. Featuring 119 luxury boutique lodging accommodations, it is conveniently located across the street from the InfoMine/Edumine offices. Experience Copper Chimney restaurant's award winning chefs and enter into an exotic world of Indian fusion food.
    The Hotel Le Soleil's website is: http://www.hotellesoleil.com.

  • Metropolitan Hotel Vancouver: make yourself at home in one of the Metropolitan Hotel's 197 elegantly appointed guestrooms and suites. Enjoy the Metropolitan's 24-hour Business Center; fully-equipped Health Club with indoor pool, whirlpool, sauna, and squash court; and the Diva at the Met restaurant, a AAA 4-Diamond rated restaurant featuring Vancouver's finest cuisine, celebrated Chef's table, and distinguished wine cellar. The Metropolitan has received a "4 Green Keys" rating through the Green Key Eco-Rating Program.
    To book your room online with our personal InfoMine corporate rate link go to: http://private.metropolitan.com/VDZKNSEDL2.
    The Metropolitan Hotel's website is: http://www.metropolitan.com/vanc/.

  • Vancouver’s most art-full hotel, the Listel Hotel is a cultural tourist’s dream and a showcase for eco-friendly practices. Packed with original art, this 129 room boutique hotel boasts comfortable, contemporary furnishings and a perfect location in the West End, the city’s most eclectic shopping and dining neighbourhood. The hotel is also home to Forage, a pioneer in sustainable restaurant operations and home to Chef Chris Whittaker’s award-winning farm-to-table fare. Forage is known for its small plate dining and BC wine and craft beer on tap.
    The Listel Hotel's website is: http://www.thelistelhotel.com.

  • Days Inn Downtown Vancouver Hotel: experience the modern comforts of the historic full-service business hotel located in the core of downtown Vancouver. Their West Coast hospitality will ensure your stay is as comfortable as possible. Discover true value at the Days Inn Downtown Vancouver Hotel as they provide FREE Wireless Internet, Bottled Water / Tea & Small Business Center. InfoMine’s corporate rate includes $10.00 breakfast voucher, best available room at check-in, Day Pass to Health and Fitness Centre around the corner.
    The Days Inn Downtown's website is: http://www.daysinnvancouver.com/.

For further information about hotels in Downtown Vancouver, see the following website: http://www.hotels-vancouver.ca/hotels/Downtown.

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

Notice of cancellation must be given in writing by letter, fax or email and action will be taken to recover, from the delegates or their employers, that portion of the fee owing at the time of cancellation.

A 10% administration fee will be levied for cancellations made 4 or more weeks prior to the first day of the course. Thereafter, the following cancellation refund schedule will apply.

  • Cancellation made more than 3 weeks prior to the first day of the short course: 70% of the registration fee is reimbursed.
  • Cancellation made more than 2 weeks prior to the first day of the short course: 50% of the registration fee is reimbursed.
  • Cancellation made less than 2 weeks prior to the first day of the short course: no reimbursement of registration fees.

Edumine reserves the right to cancel an advertised course on 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 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.

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