Economic Valuation of Mineral Deposits, 24 and 25 May 2018, CSIR Mining Precinct, melville

Course Outline

• Summary of Global Valuation Codes, focusing on SAMVAL, VALMIN andCIMVAL. Their similarities and differences. The concept of a Competent Valuator.Their relationship to their relevant exchanges. The three valuation approaches andcommon valuation methodologies within these approaches;
• The project pipeline – from exploration to feasibility, and how valuation approaches
  change;
• A simple valuation model demonstrating the four cash flow streams: Revenue,
  Operating Costs, Capital Costs and Taxes/Royalties. Calculation of NPV, IRR and
  Payback. Worked hands-on example;
• The inputs. Detailed examination of each cash flow stream. Revenue – what price,
  discount rate and exchange rate to use, Operating costs – production, recoveries and
  different products, Capex – how to estimate capex, contingency and escalation, taxes
  and royalties – focusing on South Africa;
• Grape Expectations – a practical example. Using a vineyard, various development
  options will be investigated;
• Detailed calculation, uses, strengths and weaknesses of valuation metrics – mainly
  NPV, IRR, Payback, and others (illustrated in the above worked example).