Project finance mining pdf

Production Risk — ability to produce the projected tonnage of minerals annually, while maintaining projected levels of operating profit. Marketing Risk — ability to sell output at prices that will maintain profit margins. If sold under long-term sales contracts, the strength and geographical diversity of purchasers, while contracts contain appropriate force majeure provisions.

The middleman pays for this advance sale with the proceeds of a bank loan, usually in a series of installments as the mine owner, the seller, needs funds for development. Repayment, including interest, is from stated percentages of future mine income.

The bank is secured by a mortgage on the production payment and an assignment of the pledged income from production, which, in turn, is backed up by strong commitments of the mining company to develop and continuously operate the mine s , usually pursuant to the terms of negotiated sales contracts. We recommend an understanding of Excel, finance and the mining sector.

It is expected that participants have a previous exposure to Excel in a financial modelling context, and foundation knowledge of investment concepts such as NPV and cash flows.

To see a full list of training courses go to the training schedule and see all the upcoming courses in your region. The Online Resources section of our website contains a substantial collection of free downloads and tutorials in financial modelling, webinars and blogs. Covering essential topics include NPV modelling and analysis, debt service reserve accounts, terminal value modelling and Excel shortcuts PDF Download— you will have hours and hours of free learning.

Learn the skills required to build an integrated financial model for a mining project in this hand-on training course — from essential Excel functionality to powerful commercial scenario analysis. Build a foundation structure of your financial model which is robust, flexible and scalable for future project developments:. Focus on the physical production of the mining project with a structured approach to physical assumptions and calculations:. Develop integrated financial statements into your financial model — a required step for comprehensive analysis:.

Take control of robust and rapid sensitivity and scenario analysis through powerful Excel techniques:. Some of these cookies are necessary, while others help us analyse our traffic, serve advertising and deliver customised experiences for you.

For more information on the cookies we use, please refer to our Privacy Policy. Financial Modelling For Mining Projects. Contact form Upcoming dates Course agenda. Monday 31st January Digital, Americas.

Request course pricing. Monday 14th February Digital, Asia-Pacific. Location: Date:. Course Agenda Learn the skills required to build an integrated financial model for a mining project Learn the skills required to build an integrated financial model for a mining project in this hand-on training course — from essential Excel functionality to powerful commercial scenario analysis.

Overview of the lifecycle of the model for a mining project, from PFS and BFS to financial close and operations: Explore the different requirements in functionality and expectations from a technical model to a financial model for investment decision Understand what financiers and investors look for when assessing a financial model during the investment, project finance or due diligence process Identify typical pain points from a financial modelling perspective across the mine lifecycle.

Master proven techniques Master proven techniques for best practice modelling resulting in better models built faster: Understand the 10 foundation principles of the Corality Financial Modelling methodology — and how it applies to the mining industry Review the visual representation of the Corality Financial Modelling methodology while highlighting good vs.

Build a foundation structure of your financial model Build a foundation structure of your financial model which is robust, flexible and scalable for future project developments: Build a flexible timing structure in the financial model using appropriate date functions and binary flags — this is an essential modelling component for scalability and flexibility Construct modularised units that form the building blocks of a professional model and ensures transparency and allows for rapid expansion or modification of the financial model Establish key constants in the model using full scope of Excel range name function.