Day 1
| Time | Session | Presenter |
|---|---|---|
| 09.00‑09.15 |
Registration and Profile of Participants
|
|
| 09.15‑10.15 |
Prefeasibility Studies - Role of the prefeasibility study. Structure. Guidelines and criteria for distinguishing between resource and reserve classification. Comparison with feasibility and bankable studies. Use of project finance.
|
Dennis Buchanan
|
| 10.15‑11.00 | Funding Options for Junior Companies - Sources of equity finance. IPO and AIM. Valuation of projects. Role of joint ventures. | |
| 11.00‑11.15 |
Coffee
|
Dennis Buchanan
|
| 11.15‑13.00 |
Resource Evaluation - Sampling practice and principles of uncertainty. Spatial control of sampling and concepts of geological continuity. Methods of reserve estimation. Cut-off grades and ore body models. Geostatistics.
|
Dennis Buchanan |
| 13.00‑14.00 | Lunch | |
| 14.00‑15.30 |
Mineral Production - Mining - Pre-production planning and optimisation of the rate of mining in relation to the size of the resource. Mining methods. Dilution. Application of mining software. A demonstration of MicroMine. Estimation of operating and capital costs.
|
Dennis Buchanan |
| 15.30‑15.45 |
Tea
|
|
| 15.45-17.00 |
Discounted Cash Flow Analysis 1 - Time value of money. Incremental cash flow model. Discount rates. Optimisation of the scale
of mining. NPV, IRR, payback, maximum cash exposure. DCF exercise based on annuity tables. |
Dennis Buchanan
|
Day 2
| Time | Session | Presenter |
|---|---|---|
| 09.00‑11.00 |
Discounted Cash Flow Analysis 2 - DCF exercise based on annuity tables. Review of spreadsheet-based solution. | Dennis Buchanan |
| 11.00‑11.15 | Coffee | |
| 11.15‑13.00 | Case History of a Gold Operation - Setting up base case. Optimisation of NPV. Determination of cut-off grade. Sensitivity analys is. Interface with Micromine. A demonstration of IC-MinEval. | Dennis Buchanan |
| 13.00‑14.00 | Lunch | |
| 14.00‑15.30 | Analysis of Risk and Uncertainty in Financial Models - Monte Carlo simulation. Sensitivity analysis. Rate of production, effect of changing cut-off grade and optimisation of NPV. | Dennis Buchanan |
|
15.30‑15.45 |
Tea | |
| 15.45‑17.00 | Environmental Constraints on Mineral Resource Development - Environmental impact on mining. Tailings disposal. Rehabilitation and site monitoring. Abandonment. Cost of rehabilitation. Set up environmental costs on IC-MinEval. | Dennis Buchanan |
Day 3
| Time | Session | Presenter |
|---|---|---|
| 09.00‑11.00 |
Quantitative Finance 1 - Capital asset pricing model and return on equity. Weighted average cost of c apital. Capital structure and effect of tax. |
Akhilesh Kulkarni |
| 11.00‑11.30 | Break | |
| 11.30‑13.00 |
Accounting for Projects – Techniques for modelling the DCF analysis and the financial statements of a capital expenditure project – a case study. |
Dennis Buchanan |
| 13.00‑14.00 | Lunch | |
| 14.00‑15.30 |
Introduction to the Financial Statements of a Mining Company 1 - Overview of the framework and presentation of financial statementsaccording to International Financial Reporting Standards - Accounting for acquisitions and Impairment assets. |
Mike Herbst |
| 15.30‑15.45 | Break | |
| 15.45‑17.00 |
Introduction to the Financial Statements of a Mining Company 2 |
Mike Herbst |
Day 4
| Time | Session | Presenter |
|---|---|---|
| 09.00‑11.00 |
Quantitative Finance 2 - Futures, Forwards Options (puts and calls) and exotic options. The Black & Scholes model. Hedging. |
Douglas Taylor
|
| 11.00‑11.15 | Coffee | |
| 11.15‑13.00 | Base Metal Project Workshop - IC-MinEval-based DCF evaluation of base and precious metal operation. Setting up the model. Determination of key performance variables. Analysis of relationship between cashflow, maximum cash exposure debt and equity ratios (gearing). Project acquisition estimates. | Dennis Buchanan |
| 13.00‑14.00 | Lunch | |
| 14.00‑15.30 | Criteria for Evaluating BEE Projects - IC-MinEval-based work shop based on two or more “partners” providing different contributions to a mining project. Case history of BEE (bringing the property) that attracts a financial partner (bringing the money) and evaluating “threshold criteria” for doing the deal. Modelling of royalty, corporate tax, depreciation allowances, reserve depletion, losses and deferred costs. Profit and loss account. Balance sheet. | Dennis Buchanan |
| 15.30‑15.45 | Break | |
| 15.45‑17.00 | The use of derivatives in the Mining Sector - Financial derivatives for commodities (gold, base metals, pgm's and energy minerals) |
Steve Davey
|
Day 5
| Time | Session | Presenter |
|---|---|---|
| 09.00‑10.15 |
Iron Ore workshop - IC-MinEval-based DCF evaluation of industrial mineral projects. Interrelationship between plant recovery and revenue as a function of dmtu and penalty elements | Dennis Buchanan |
| 10.15‑11.00 | Alluvial Diamond Workshop - Deposit charact eristics. Bulk sampling techniques. Security. Grade and valuation. IC-MinEval-based DCF evaluation. | Dennis Buchanan |
| 11.00‑11.15 | Break | |
| 11.15‑12.00 | PGE Project Workshop - Deposit characteristics. Mining and recovery methods. Role of base metal by-products. Strategic issues in valuing acquisitions. IC-MinEval-based DCF evaluation. | Dennis Buchanan |
| 12.00‑13.00 | Coal Workshop - Deposit characteristics. Role of calorific values and ash content in pricing. Mining methods and transport costs. IC-MinEval-based DCF evaluation. |
Dennis Buchanan |
| 13.00 | Close |