Financial Modelling for Mining Projects

Timetable for 'Financial Modelling for Mining Projects' courses

Duration: 2 days

The nature of mining projects is unique and detailed financial analysis is often required. Financial Modelling for Mining Projects, an Excel based modelling course, covers the core Excel and Scenario skills required to efficiently and professionally analyse, communicate and update the progress of a mining project.

This course is presented by experienced mining project modellers and is focused on how a project finance banker or external party would analyse your project. This knowledge empowers you to create sensitivity and scenario framework that will hold up to the scrutiny of these stakeholders. You will learn the key skills required to build a robust and flexible financial model and to test and present your project’s performance with confidence.

Financial Modelling for Mining Projects course will help you and your team to

• Master best practice for modelling mining projects
• Build a flexible and powerful scenario manager to test your project performance
• Prepare trusted investment analysis with integrity checks
• Work faster and more efficiently with the use of shortcuts
• Present key results to a target audience with confidence

Who should attend this course?

This course is designed for people involved in the management, development or appraisal of mining projects. It is equally suitable for mining technicians who need to present analysis to others and for financiers who need to understand more about the mining aspects of a project analysis.

Course outline

Day one

The fundamentals of modelling in mining projects

• Discuss the importance of modelling in mining projects
• Understand the key principles of project finance analysis
• Learn and discuss why getting the financial model right is so important

How to structure your model in an appropriate way

• Understand how by using SMART, models are easily navigated and readily checked
• Master efficient use of range names
• Boost user confidence by building in checks to make it easier to review

Effective modelling of the development phase

• Allow rapidly dynamic construction calculations
• Discuss the different methods that can be used for construction calculations

Representing the physicals of the mine

• Develop strip ratios, ore mined and grades across multiple ore bodies
• Create perfectly balancing stockpiles for ore and metal content
• Identify milling constraints and prevent common errors from flowing through

Day two

Calculate revenue and appropriate hedging

• Model revenues with flexible price and forex assumptions
• Build robust forward hedging and understand when to use it
• Discuss how offtake contracts can be modelled the same way

Develop the costs including C1, C2 and C3

• Model and discuss how escalation impacts cashflows
• Learn how to adjust operating costs for stockpile not sold
• Discuss methods for providing for back-ended rehabilitation costs
• Understand the principles of C1, C2 and C3 costs and derive from the model

Develop accounting statements for the model

• Introduction to the order of cashflows in the cashflow waterfall
• Discuss what elements are important to different stakeholders
• Understand how the P&L statement is driven by stockpile adjustments and depreciation

Value your mining project or business for external parties

• Understand and calculate project returns (NPV and IRR)
• Develop key ratios for bank lending and reporting

Build a powerful scenario manger

• Save critical time and deliver rapid analysis using our approach to scenario management
• Transform scenarios into yet another way to test the model in all scenarios all of the time
• Build confidence in your analysis through pre-programmed combinations of model inputs

Timetable for 'Financial Modelling for Mining Projects'

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