VALUATION OF COAL MINING PROJECTS . LIVE WEBCAST

by Professor Dennis Buchanan

Course Presenters Schedule General information

This webcast is the perfect alternative for busy professionals like you! Attend these 2 live sessions (3 hours each on consecutive days) from your workstation at home or in the office. You will also get access to our archive for future reference. more details »

This course contributes to your Continuing Professional Development (CPD) requirements as it meets the requirements for formal CPD activity for mostCanadian provincial associations and US state boards and qualifies for Professional Development Hours (PDH) credit. A webcast is considered a live, interactive course and will be accepted as a part of your live seminar requirement. more details »

Background

In recent years the transformation and restructuring of the minerals industry has occurred at an unprecedented rate. While the valuation of coal projects are based on similar principles to those used in the valuation of other bulk volume commodities dependent on infrastructure, important differences need to be recognised. The conventional treatment of grade in metal and mineral projects particular requires a quite separate approach based on yields and linked to wash recovery. Revenue linked the range of different coal products with up to eight different categories recognised in some South African operations. Volumetric conversions and extraction factors need to be handled with care.

Course Aim and Structure

The aim of this course is to provide an introductory guide to the valuation of coal mining projects. It will be delivered based on traditional lectures designed to provide an overview of the key technical aspects of the coal industry together with an overview of key financial concepts. Emphasis will, however, be placed on workshop sessions, in which fully linked financial models will be used to determine the weighted average cost of capital and the optimum level of gearing for a range of mineral project types. Debt performance indicators and ratios will be considered.

Pre-course e-learning

Prior to the course, registered delegates are provided with an internet url, user name and password. This enables them to access online e-learning material from EduMine (www.edumine.com) consisting of a course titled "An Introduction to Modelling Coal Project Finance", authored by Prof. Dennis Buchanan and Tim Shaw. This course provides delegates with important background material which increases their understanding and appreciation of the webcast. Review of this material prior to the course, including completion of the interactive reviews, enables delegates to derive maximum benefit from the live sessions. This course is part of a blended learning program, which integrates online learning with the dynamics of a webcast presentation by industry specialists.

IC-CoalEval

Use will be made in the workshop sessions of the IC-CoalEval software provided by IC-FinEval, Excel™-based spreadsheet programmes automating all stages required to produce models for a wide range of mineral projects. IC-CoalEval produces a balance sheet, and profit and loss account from the cash flows, with tax provisions linked to the profit and loss account. The cost of debt is calculated, as is the weighted average cost of capital and the cost of equity. Output modules include the base case discount cash flows, as well as key financial ratios and performance indicators such as NPV, IRR payback and maximum cash exposure. Sensitivity analysis can be undertaken on key variables.

The functionality of IC-CoalEval will be delivered over the internet through the Software as a Service (SAAS) system with InfoMine (http://software.infomine.com/)

Delegates will be expected to have their own laptop computers available. They will need to have administrative rights for their laptops, as there will be the need to install ActiveX to access the system.  Delegates will be given access to SAAS a few days before the start of the course. (Delegates with AppleMac and Firefox internet browsers may need some support.) Delegates all have access to the functionality of IC-CoalEval through SAAS for a further four weeks after the course. Access beyond that will be available on subscriptions.

UBC Certificate in Mining Studies

This course qualifies for the UBC Certificate in Mining Studies, a continuing education initiative by the Norman B. Keevil Institute of Mining at the University of British Columbia. Delegates registered for the Certificate in Mining Studies who attend this course and complete a take-away project will receive two days of short course credit towards a Mining Certificate from UBC Continuing Studies. more details »

Who Should Attend?

This course will be of particular interest to all financial professionals, who are involved in the funding of minerals projects in general but with an interest in the energy sector. They might be working for financial institutions as mining analysts, fund and asset managers, or securities and corporate finance investment bankers. They might also be working for junior mining companies preparing business cases, and other specialists involved in the appraisal, financing and development. A basic understanding of the techniques of Discount cash Flow modelling is assumed.