Mine Project Economics

Provisional Schedule

Instruction will take place from 9:00AM to 5:00PM on June 5th and from 9:00AM to 12:00PM on June 6th, with a lunch break from noon to 1:00PM on the first day and 15 minute snack breaks in mid-morning and mid-afternoon.

At 2:00PM on June 6th, shortly after the course and in the same location, EduMine will present another short course, Valuation of Mineral Projects based on Technical and Financial Modelling. Participants of Mine Project Economics will be well positioned to excel in the valuation course. For more details or to register, please see the course page. Note that there is a 10% discount for combining two or more courses!

The Mine Project Economics course includes following topics:

Introduction

Discounted cash flow, continuous cash flow models, project cash flow model, net present value. Simple examples of valuations

Mining Costs

Capacity factoring, cost models, activity-based costing, decision making using costs. Examples from current feasibility studies

Project Valuations

Equity and debt financing, flow to equity valuation, project and sub-project valuation, asset purchase and replacement including simple models of tax consequences. Examples

Uncertainty and Risks

Models of uncertainty, analytical and simulation techniques, effects of risk perception. Examples to illustrate effects of uncertainty

Discount Rates

Market and non-market risks, the capital asset pricing model, discount rates used in industry, treatment of non-market risks

Real Options

Types of real options, mine valuation by real options, real options as a design paradigm (real options in real mines) Examples

Spreadsheet models showing the methodologies employed and examples will be provided.