|Main Body||This 1-day course is for people with no financial background who need to understand the principles of how finance is used and developed |
in a mining industry context. We discuss the fundamentals of finance and how it relates specifically to mining and exploration.
You will gain; an understanding of financial accounting foundations, a working understanding of financial modelling principals, and why and
how finance models represent mining operations. This one-day introductory course has been especially designed for anyone involved in
mining projects who would like to understand: the basic concepts of financial modelling; what to look for in a financial model; basic
investment decisions based on a financial model; and some tricks of the trade.
The course will cover the following;
• Basic accounting concepts and principles; definitions of some financial accounting terms, explanation of the terms and concepts.
• Financial accounting system; Balance sheet, Income statements and cash flow statements
• Time Value of Money; Payback, ROI, NPV, IRR and Risk and Return
• The Mining context
• Project stages; Scoping study, Pre-feasibility study, Feasibility study, Definitive / Bankable Feasibility study
• Project Valuations / Modelling; Cash flow modelling of mining projects, Opportunity costs, Project sensitivities, Monte Carlo, Real
• Project Funding; Return on Investment, Risks, Debt / Equity, Hybrids
• Summary of funding principles