Mining Valuation and Financial Modelling

UAE (DUBAI): 19-23/2/24
BULGARIA (SOFIA): 18-22/3/24
GREECE (ATHENS): 20-24/5/24
TURKIYE (ISTANBUL): 14-17/10/24

Course Brief

Mine Valuation and Financial Modelling are important tools in any company’s decision-making, especially as mining projects face many unique challenges, such as: high capital costs, long-term projects, and high variability in commodity prices. This course is specifically designed to provide delegates with the tools required to analyse mining financial models, such that summarised outputs are produced on which investment decisions can be made.

This course teaches delegates to analyse existing non-proprietary models and then create models for their own applications. The material is well suited to managers involved in or to be involved in assessing the risks in funding mining projects.

This course blends theory with real industry scenarios and is designed to provide a holistic approach, from the initial construction of a financial model to the final financial assessment to be able to make an investment decision.

By the end of the course delegates will be able to effectively construct a financial model that describes the process flow of their mining business, from mineral extraction, all the way until net profit after tax. Delegates will learn how to itemise cost and revenue drivers, model taxation, working capital, and debt funding.

A sound knowledge and use of Excel, as well as an understanding of finance and the mining sector is a pre-requisite for this course. It is expected that delegates will have a knowledge of investment concepts such as NPV and Discounted Cash Flows.

There is also flexibility in this course for client-specific requirements/needs to be addressed. These MUST be discussed and finalised with our Subject Matter Expert before the course commences.

COURSE CONTENT

Advanced Excel
- Advanced range names, including formulas and naming conventions
- Advanced conditional formatting, including formula-driven formatting
- Aggregation functions
- Financial functions: IRR, NPV, PV, FV, PMT
- Goal Seek, Solver
- Pivot Tables
- Scenarios, sensitivity, data tables
- Lookup functions: VLOOKUP, HLOOKUP, INDEX, MATCH
- Advanced data validation techniques and controls
- Introduction to macros and userdefined functions Included are explanations of how these are typically be applied to mining project financial models
Financial Modelling and Project Evaluation
- Financial Modelling Principles & Practices Introduction to Financial Modelling
- What is a model?
- Spreadsheet models
- Types of mining sector models Principles of Financial Modelling
- Steps in model building
- Best practice guidelines and spreadsheet modelling standards
- Designing for flexibility and scalability
- Designing for consistency, usability and functionality
- Designing checks and balances
- Using VBA in financial models
Application of Financial Modelling Principles of Risk and Return
- Weighted Average Cost of Capital (WACC) & Cost of Equity Capital
- Recap of mining accounting
Financial Models Control and management
- Financial Model Auditing/Review
- Why audit?
- Excel’s auditing tools
- Automated testing tools: role, purpose and limitations, demonstration
- Model documentation
- Financial Modelling Software