Duration: 2 days

Get the skills to develop robust financial models that can stand up to the scrutiny of any audience, from internal operations to bankers and JV partners.

Financial Modelling for Mining Projects will ensure successful development and financing of mining projects through comprehensive financial and operational analysis. With a focus on how project finance bankers, investors or external parties would analyse your project, this hands-on Excel based course covers both operational and financial aspects and gives you the confidence required to build financial models for any type of mining project.

Your expert trainer will guide you through the modelling principles and structured approach required to develop robust and flexible financial models specifically for mining projects, and improve communication with financiers and investors.

This course will enable you to

• Master best practice techniques for financial modelling of mining projects
• Build a flexible and powerful scenario manager to test your project’s 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 suitable for anyone who needs to build, review or analyse project finance models within the mining sector, including industry professionals, investment bankers and advisors. Typical attendees include Analysts, Managers, Senior Managers, Associate Directors and CFOs.

Course outline

Day one

Discuss the lifecycle of the model for a mining project, from PFS and BFS to financial close and operations

• The difference in functionality and expectations from a technical to a financial model
• Learn what financiers look for when assessing a model during the credit process

Build a flexible timing structure for efficient modelling of the development phase

• Learn how to work with dates and essential date functionality
• Focus on the use of binary timing flags and how these are used to simplify logic

Develop model architecture suitable for your project that has the flexibility to last long term

• Learn how to consider and model the different structural phases
• Ensure calculations are flexible and scalable with new inputs
• Integrity checks highlight to developers and users if the mechanics fail

Build dynamic and flexible structures for revenue analysis

• Model hedging and discuss how typical instruments can be incorporated
• Incorporate pricing paths to handle different views on price
• Use the scenario manager to assess the impact on revenue of different production cases

Day two

Develop a structured approach to represent the physical assumptions and calculations

• Layout reserve and production assumptions in a way that is readily understood and flexible
• Model stockpiles, grades, levels and yields
• Use SMART to ensure consistent and transparent calculations

Prepare accounting statements to support the cashflow analysis

• Build the income and statement
• Create a balance sheet with no balancing items
• Combine all three into one integrated three-way framework

Incorporate powerful valuation techniques and functionality for key driver sensitivities

• Use XNPV and XIRR to evaluate flexible scenarios
• Use 1D data tables to prepare analysis of value versus a key driver

Take control of robust and rapid sensitivity and scenario analysis through powerful Excel techniques

• Integrate flex cells with a powerful scenario manager
• Run multiple combinations of input sensitivities simultaneously
• Test the robustness of your model in all scenarios, all of the time

Register

Australasian course bookings: +61 2 9229 7400
EMEA / South American / US & Canada course bookings: +44 20 7947 4019