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The GSSA presents ECONOMIC EVALUATION OF MINERAL DEPOSITS PRESENTED BY MATT MULLINS

jeff ostrowick

24 & 25 MAY 2018 | VENUE:CSIR – MINING PRECINCT,Cnr Carlow & RustenburgRoads, Melville

THIS SHORT COURSE WILL BE PRESENTED BY MATT MULLINS
This course will be of interest to Geologists, Mining Engineers and Project Managerswho would like to understand financial modelling, how to apply the principles to their mineor project and how to make more efficient decisions.

CPD POINTS QUALIFICATION
Attendance and completion of this short course qualifies the attendee for16 GSSA-CPD Points or 2 SACNASP-CPD Points

COURSE OUTLINE

  • Summary of Global Valuation Codes, focusing on SAMVAL, VALMIN and CIMVAL. Theirsimilarities and differences. The concept of a Competent Valuator. Their relationship totheir relevant exchanges. The three valuation approaches and common valuation
    methodologies within these approaches.
  • The project pipeline – from exploration to feasibility, and how valuation approacheschange.
  • A simple valuation model demonstrating the four cash flow streams: Revenue, OperatingCosts, Capital Costs and Taxes/Royalties. Calculation of NPV, IRR and Payback. Workedhands-on example.
  • The inputs. Detailed examination of each cash flow stream. Revenue – what price, discountrate and exchange rate to use, Operating costs – production, recoveries and differentproducts, 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 optionswill be investigated.
  • Detailed calculation, uses, strengths and weaknesses of valuation metrics – mainly NPV,IRR, Payback, and others (illustrated in the above worked example).
  • Case study – Listed PGM-Cr producer. A detailed worked example of a multi-commodityPGM/Ferrochrome operation.
  • Risk and uncertainty – deterministic and probabilistic approaches.
  • Decision analysis – sources of poor decisions; analysis of bias in decision making; how toovercome biases; a structured approach to decision making.

CLICK HERE TO REGISTER:http://www.gssa.org.za/wp-content/uploads/Economic-Evaluation-Registration-Form-1.docm

Delegates will be provided with course notes, spreadsheet templates and workedexamples, and electronic copies of background papersEach delegate will need a laptop with Excel

PRESENTER: MATT MULLIS; DIRECTOR: TECOMA STRATEGIES

Matt Mullins has 38 years’ experience in theMinerals Industry, as a Mining and ExplorationGeologist with Gold Fields of South Africa, as
Consulting Geologist (Mines) for Rand Mines, as aConsultant, a Researcher, a Mining Analyst on theJSE, and as global Vice President for Mineral
Resource Development for BHP Billiton. Matt hasdetailed knowledge of Resource and ReserveEstimation, Valuation and Reporting in a number of
commodities, such as Iron Ore, Copper, Bauxite,Nickel, Zinc, Heavy Minerals, Coal, Manganese,Diamonds, Gold and Platinum in jurisdictions such
as Canada, the USA, Suriname, Colombia, Peru,Chile, Mali, the DRC, Zambia, Angola,Mozambique, South Africa, Indonesia, China andAustralia. Practical examples will be drawn fromhis experience. Matt is Chairperson of theSAMCODES Standards Committee, is a GSSA PastPresident and Fellow, SAIMM Fellow, and aAusIMM Fellow.