Course Details
- Presenters:
Prof. Dennis Buchanan,
Clem Pelletier
- Date:
23 - 25 January 2008
- Duration:
3-day course
- Location:
Vancouver, BC, Canada
- Fees:
CAD 2000
- How to Register
-
VALUATION OF MINERAL PROJECTS
by Professor Dennis Buchanan and Clem Pelletier
23 - 25 January 2008 Vancouver Canada
Provisional Schedule
Day 1 - Technical Appraisal
| Time |
Session |
Presenters |
| 08:15 – 08:45 |
Registration |
|
| 08:45 – 09:00 |
Welcome and Profile of Participants |
Dennis Buchanan |
| 09:00 – 10:00 |
Feasibility Studies - Role of a prefeasibility study. Scope of a full technical feasibility study. Role in raising equity. Role in securing debt finance. Independent reviews. |
Dennis Buchanan |
| 10:00 – 11:00 |
Resource Estimation I - Sampling practice and principles of uncertainty. Spatial control of sampling and concepts of geological continuity. Grade and volume estimates. Determination of optimum sampling density. Block modelling. Cut-off grades and ore body modelling. Grade tonnage analysis. Reserve and resource definitions. |
Dennis Buchanan |
| 11:00 – 11:30 |
Refreshments |
|
| 11:30 – 13:00 |
Resource Estimation II - Methods of ore reserve estimation. Semivariograms. Kriging and the determination of block estimates and associated estimation variance. |
Dennis Buchanan |
| 13:00 – 14:00 |
Lunch |
|
| 14:00 – 15:30 |
Mine Planning - Mining block model creation. Pit design and optimisation. Use of Micromine software. Relationship between costs and scale of mining. Mining dilution and recovery. Sampling on the scale of mining. Proven and probable categories in operating mines. Metal reconciliation from in situ resource estimation to metal produced. |
Dennis Buchanan |
| 15:30 – 15:45 |
Refreshments |
|
| 15:45 – 17:00 |
Operating Costs - Contract mining. Organisational structure. Mining schedule. Fixed and variable costs (power, labour and consumables). Workshop Session |
Dennis Buchanan |
Cocktail reception 17:30 - 19:00
Day 2 - Quantitative Finance
| Time |
Session |
Presenters |
| 09:00 – 10:00 |
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. |
Dennis Buchanan |
| 10:00 – 11:00 |
Workshop - DCF exercise based on annuity tables. Review of spreadsheetbased
solution. |
Dennis Buchanan |
| 11:00 – 11:30 |
Refreshments |
|
| 11:30 – 13:00 |
Demonstration of IC-MinEval - Case history of a gold operation. Setting up
base case |
Dennis Buchanan |
| 13:00 – 14:00 |
Lunch |
|
| 14:00 – 15:30 |
Funding Options for Junior Companies - Sources of equity finance. IPO and AIM. Valuation of projects. Role of joint ventures. Case histories of Canadian projects |
Dennis Buchanan |
| 15:30 – 15:45 |
Refreshments |
|
| 15:45 – 17:00 |
Project Finance - Capital Asset Pricing Model. 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. Debt performance indicators (debt service coverage and ratios such as loan life, project life, reserve tail, interest cover, principal cover and residual cover). EduMine-based Base Metal Workshop. |
Dennis Buchanan |
Day 3 - Quantitative Analysis
| Time |
Session |
Presenters |
| 09:00 – 11:00 |
Tax and Company Structure - Tax models. Taxation agreements. Carry forward provisions. Royalties. Depreciation allowances. Management accounts and audits. Canadian mining taxation. |
Dennis Buchanan |
| 11:00 – 11:30 |
Refreshments |
|
| 11:30 – 13:00 |
Environmental Review - Site visits. Impact assessment. Baseline conditions, impacts and mitigation. Management and monitoring. |
Dennis Buchanan and Clem Pelletier |
| 13:00 – 14:00 |
Lunch |
|
| 14:00 – 15:00 |
Analysis of Risk and Uncertainty - Treatment of multivariant systems. Application to Monte Carlo simulation techniques. |
Dennis Buchanan |
| 15:00 – 15:30 |
Scenario Analysis - Introduction to workshop session. Diamonds and PGE |
Dennis Buchanan |
| 15:30 – 15:45 |
Refreshments |
|
| 15:45 – 17:00 |
Scenario Analysis - Introduction to workshop session. Coal. |
Dennis Buchanan |
|
Registration form
