Masterclass on Mineral Economics

A masterclass on mineral economics will be presented in Perth in May and involve a group of 16 senior representatives from governments, think tanks and academic institutions from various countries, who wish to gain a better understanding of the fundamentals of investment decisions, project economics and evaluation of exploration and mining projects.

The masterclass will cover the fundamental principles and concepts of mineral economics, finance and project evaluation as applied to investment decisions in the resources sector. It progresses from simple discounted cash flow (DCF) models constructed under assumed certainty, to basic consideration of the related project and financial risk, and factors that shape investment decisions under uncertainty.

The final session will provide familiarisation with risk analysis and recent developments in project evaluation including an introduction to the concept of real option valuation (ROV).

Other core topics of the program will include introduction to mineral economics, financial accounting reports as a source of information for cash flow modelling of mining projects, financial model of a mining project, funding a mineral project: the role of equity and debt, risk analysis: general concepts, decisions under certainty and developments in mineral project evaluation and methodologies.

Learning will be reinforced by numerical exercises and by the construction of a simple financial model of a mining project using an excel spreadsheet and a propriety risk analysis software package.

During the second week of the program, participants will participate in the Mining for Development Conference 2013 and Alumni Day, both hosted by IM4DC, and the Extractive Industries Transparency Initiative (EITI) Global Conference.

The Masterclass on Mineral Economics will take place from 13 May 2013, and will be presented by the Centre for Exploration Targeting at The University of Western Australia (UWA) and Curtin University, and the Postgraduate Mineral and Energy Economics program at Curtin University Graduate School of Business.