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Mining Due Diligence: Evaluation Fundamentals
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Mining Due Diligence: Evaluation Fundamentals

2-Day Training Course: A complete guide to valuation & risk assessments of mining projects. Benefit from years of experience in technical review & risk evaluation of mining projects. Learn how valuation can reduce risk, increase confidence & demonstrate the sensitivity to assumptions

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overview

Key Learning Objectives

  • Learn to perform comprehensive “technical due diligence”
  • Avoid the more common pitfalls and lower project risk
  • Understand what financiers will look for in a project
  • Compare various resource and reserve classification schemes
  • Understand international codes such as JORC and Valmin Codes
  • Learn to value mining projects by discounted cash flow models
  • Perform sensitivity and scenario analysis
  • Examine methods of valuing exploration tenements
  • Discuss current market trends and best practices with global case studies

About the Course

This course will cover due diligence practices for mining projects. It will include comparisons of resource and reserve estimation methodologies and classification systems (including the Australian JORC Code, China, Canada, South Africa, UK and the USA).

There will also be intensive sessions on:

  • Technical review and evaluation of risk in mining projects
  • Operating and capital cost estimation
  • Technical-economic modelling
  • Valuation of mining projects by discounted cashflow models
  • Valuation of exploration tenements
  • The difference between technical value and market value

Benefit from years of experience in technical review and risk evaluation of mining projects. You will learn how technical due diligence can separate high risk mining and exploration projects from lower risk projects.

Learn how valuation of mining projects can examine and reduce risk, increase confidence and demonstrate the sensitivity to assumptions. You will also have the tools to equip yourself and be more capable in Technical-economic modelling and be able to run sensitivity studies to examine project risks in mining.

Laptops are required

Who Will Benefit

The course is designed for those with little prior experience or knowledge of technical-economic assessment. These include newcomers to mining valuation, junior members of technical due diligence teams, bankers and other advisors who commission or work with technical due diligence teams and merger and acquisition practitioners who want to understand more about what technical due diligence teams do.

Non-technical staff with qualifications in accounting, economics, analysts or business, who are interested to understand the technical inputs to a project evaluation and how they affect financial outcomes will also benefit.

Experienced professionals looking to extend their skills should attend our Mining Due Diligence: Technical-Economic Assessment Masterclass

Course Outline

Due diligence for mining projects, why is it necessary?

  • Historical risk review
  • What are the main causes of mining project failure
  • Case studies and discussions (including Australia, China, India, Indonesia, Kazakhstan, Kyrgyz Republic, Laos, Mongolia, the Philippines, Vietnam)
  • Examples include gold, iron ore, copper, manganese, nickel, industrial minerals, uranium and coal

Comparisons of resource and reserve estimation methodologies and classification systems

  • Australian JORC Code
  • China and Chinese classifications
  • China compared to JORC
  • Canada, South Africa, UK, USA

Laptop exercise
Resource estimates

Technical review of mining projects

  • Technical evaluation guidelines
  • The process of due diligence and evaluation of risk in mining projects
  • Environmental and social aspects that need to be considered
  • Risk assessments

Technical-economic modelling

  • Introduction to modelling mining projects
  • Model structure
  • Assumptions, building in flexibility
  • Reserves, resources and mining schedules
  • Metal production and revenue calculations
  • Cost schedules

Operating cost and capital cost estimation methods

Laptop exercise
Operating and capital cost

Valuation of mining projects

  • Discounted cash flow models
  • Sensitivity studies
  • Relationship between NPV and market value
  • Examining other valuation methods
  • Worked example

Laptop exercise
Valuation sensitivity

Valuation of exploration tenements

  • Various methods are presented, including a geological risk-based approach
  • Presents concepts of Target Value and Expected Value
  • Importance of Materiality, Competence, Independence and Transparency
  • Calculation and comparison of values at each stage of discovery and development
  • Comparison and benchmarking of various methods
  • Example case studies are presented

International valuation codes and best practice

  • The Valmin Code
  • The CIMVAL Code
  • The SAMVAL Code
  • Comparison of the codes

Conclusion

At the conclusion of the course, you will understand industry best practise in all the main areas of mining project review.

You will be able to put together a program for a due diligence program for a mining project and discuss the project with technical staff, non-technical staff, company executives at all levels and potential financiers to the project.

On-site & in-house training

Deliver this course how you want, where you want, when you want – and save up to 40%! 8+ employees seeking training on the same topic?

Talk to us about an on-site/in-house & customised solution.

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