Course Details

Next Course:

11, 12, 13 January 2010

Seating Still Available:

For alternative dates, check
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VALUATION OF MINERAL PROJECTS Webcast

by Professor Dennis Buchanan et al

This webcast is divided into three sessions with following topics:

Session 1 - Technical Appraisal on January 11 from 8.00am to 11.00am Pacific Standard Time

Feasibility Studies. Role of a feasibility study. Scope of a full technical feasibility study. Role in raising equity. Role in securing debt finance. Independent reviews.

Resource Estimation. 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.

Mine Planning. Mining block model creation. Pit design and optimisation. Use of Micromine software. Sampling on the scale of mining. Proven and probable categories in operating mines. Metal reconciliation from in situ resource estimation to metal produced.

Operating Costs. Relationship between costs and scale of mining. Mining dilution and recovery. Contract mining. Organisational structure. Mining schedule. Fixed and variable costs (power, labour and consumables)

Session 2 - Quantitative Finance on January 12 from 8.00am to 11.00am Pacific Standard Time

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.

Workshop. DCF exercise based on annuity tables. Review of spreadsheet-based solution.

Demonstration of IC-MinEval. Case history of gold operation. Setting up base case.
Funding Options for Junior Companies. Sources of equity finance. IPO and AIM. Valuation of projects. Role of joint ventures. Case histories of South African projects.

Session 3 - Quantitative Finance on January 13 from 8.00am to 11.00am Pacific Standard Time

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. EduMine-based Base Metal Workshop.

Analysis of Risk and Uncertainty. Treatment of multivariant systems. Application to Monte Carlo simulation techniques.