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Provisional Schedule
Day 1 Financial Modelling
| Time |
Session |
| 08.15 – 08.45 |
Registration |
| 08:45 – 09:00 |
Welcome and Profile of Participants |
| 09.00 – 10.00 |
1.1 Financial Modelling.
Discounted cash flows. Time value of money. Discount rates. Indicators of economic viability (NPV, IRR and payback). Maximum cash exposure. Sensitivity analysis. Rate of production, effect of changing cut-off grade and optimisation of NPV. |
| 10.00 – 11.00 |
1.2 Workshop.
DCF exercise based on annuity tables. Review of spreadsheet-based solution. |
| 11.00 – 11.30 |
Break |
| 11.30 – 13.00 |
1.3 Demonstration of IC-MinEval.
Case history of gold operation. Setting up base case. |
| 13.00 – 14.00 |
Lunch |
| 14.30 – 15.30 |
1.4 Analysis of Risk and Uncertainty.
Treatment of multivariant systems. Application to Monte Carlo simulation techniques. |
| 15.30 – 15.45 |
Break |
| 15.45 – 17.00 |
1.5 Tax and Company Structure.
Tax models. Taxation agreements. Carry forward provisions. EPT. Royalties. Depreciation allowances. Management accounts and audits. |
Day 2 Technical Appraisal
| Time |
Session |
| 09:00 – 10:00 |
2.1 Value Creation in Mineral Projects
The Life Cycle of mineral projects. Drivers. Stages of planning and execution. Relationship between risk and valuation.
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| 10.00 – 11.00 |
2.2 Feasibility Studies
Role of a prefeasibility study. Scope of a full technical feasibility study. Role in raising equity. Role in securing debt finance. Engineering, Procurement, Construction and Management contracts.
|
| 11.00 – 11.30 |
Break |
| 11.30 – 13.00 |
2.3 Resource Estimation
Concepts of geological continuity. Resource block estimates |
| 13.00 – 14.00 |
Lunch |
| 14.00 – 15.30 |
2.4 Resource Estimation
Geostatistics. Cut-off grades. Reserve and resource definitions. Interface between envelopes of mineralization, resource blocks and mine design. |
| 15.30 – 15.45 |
Break |
| 15.45 – 17.00 |
2.5 Scale of Mining
Relationship between costs and scale of mining. Valuation of long life projects.
Key differences between the type of project that would be material to a major compared to the junior sector. |
Day 3 Technical and Financial Modelling
| Time |
Session |
| 09:00 – 10:00 |
3.1 Scenario Analysis Base Metals
Illustration of extractive metallurgy through the hydrometallurgy and pyrometallurgy of copper ores. Oxide versus sulphide ores. Solvent extraction and electro-winning. Net Smelter Returns. Negotiating an off-take agreement for a project that produces a polymetallic concentrate |
| 10:00 – 11:00 |
3.2 Project Finance
Case history of an open pit copper project. Relationship between cost of debt, taxation, Balance Sheet, profit and Loss account and cash flow. Calculating the cost of debt and equity. Determining the weighted average cost of capital and optimum level of gearing. |
| 11.00 – 11.30 |
Break |
| 11.30 – 13.00 |
3.3 Scenario Analysis Base Metals
Workshop session. Underground Operation.
Engineering concepts behind block caving mining method. Technical risks of the side-wall failure in the open pit on dilution in subsequent block caving operations. Implications for the reserve tail and project finance. Multi-partner scenario analysis determining relative return for different stakeholders as a function of investment contribution.
|
| 13.00 – 14.00 |
Lunch |
| 14.00 – 15.00 |
3.4 Scenario Analysis Industrial Minerals
Workshop session. Iron ore.
Chemistry of primary minerals. Price based on dry metric tonne units as a function of iron content. Product specifications and penalties. Beneficiation and yields as a function of iron content. Infrastructure Power, transport of ore (rail and slurry pumping) and port facilities. Optimisation of NPV against yield.
|
| 15.30 – 15.45 |
Break |
| 15.45 – 17.00 |
3.5 Scenario Analysis Industrial Minerals
Workshop session. Mineral Sands
Mineralogy of mineral sands. Mining methods, environmental impact and optimisation of NPV.
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Day 4 Scenario Analysis. Industrial Minerals
| Time |
Session |
| 09:00 – 10:00 |
4.1 Scenario Analysis Industrial Minerals
Workshop session. Diamonds
Geological settings and pricing. Alluvial deposit case history. Evaluation of projects. Instability of DCF models. Primary kimberlitic projects
|
| 10:00 – 11:00 |
4.2 Scenario Analysis Industrial Minerals
Workshop session. Bauxite Value chain from bauxite through to alumina and then aluminium. Environmental impact of bauxite mining. |
| 11.00 – 11.30 |
Break |
| 11.30 – 13.00 |
4.3 Environmental Review.
Site visits. Impact assessment. Baseline conditions, impacts and mitigation. Management and monitoring.
|
| 13.00 – 14.00 |
Lunch |
| 14.00 – 15.30 |
4.4 Scenario Analysis - Energy
Workshop session. Coal
Geology and classification. Evaluation. Coking Coal. Role of volumetrics in setting up a financial model.
|
| 15.30 – 15.45 |
Break |
| 15.45 – 17.00 |
4.5 Surface coal operations.
Justification of an investment in equipment. Set up IC-CoalEval open pit scenario. Funding based on debt and equity. Sensitivity analysis.
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