• At the completion of this subject students should be able to:
  1. Explain the basic geological processes that lead to the formation of mineral and hydrocarbon deposits.
  2. Assess the basic techniques of ore extraction and mineral processing and the impact of various methods on the cost structure of an operation.
  3. Explain the structure of the commodities market and the various supply and demand factors that impact upon the pricing of mineral commodities.
  4. Evaluate the feasibility of a mining project in the context of the resources industry.
  5. Construct an earnings model to forecast future company earnings.
  6. Apply valuation techniques to listed mining companies.

The course is designed to offer distance learning to mining geologists, mining engineers and mineral process engineers as well aiming to broaden knowledge beyond their particular areas of expertise. It will also be of interest to support staff on active mining operations as well as those in International Development and Government,

Introduction to mining investment analysis

On successful completion of this topic, students should be able to:

• provide an overview of Middle East’s place in the global mining industry
• identify the mining industry’s contribution to Middle East’s economy
• describe the characteristics of the mining sector
• describe the uses, inputs and outputs of a discounted cash flow (DCF) valuation model
• describe the progression of a project as it moves through the various stages of feasibility from scoping study to definitive feasibility study
• discuss macro factors that impact on the mining sector
• understand the process of mining investment analysis and the elements important to this analysis
• discuss the role of a mining analyst and the resources available to them to carry out their role.

Geology and exploration

On successful completion of this topic, students should be able to:

• outline the geological structure of the earth
• explain the difference between mineral deposits and ore reserves
• describe processes by which mineral deposits are formed
• distinguish between various categories of mineral resources and ore reserves
• briefly describe the sequence of events, methods used and costs involved in a typical exploration program.

Mining methods

On successful completion of this topic, students should be able to:

• outline the main elements involved in surface and underground mining
• describe the primary processes involved in mining

Mineral processing and extractive metallurgy

On successful completion of this topic, students should be able to:

• outline the steps involved in mineral liberation
• describe the major means by which minerals are concentrated
• describe the main processes involved in pyrometallurgy and hydrometallurgy
• outline the purpose and describe the main methods of refining.

Data, valuation and modelling

On successful completion of this topic, students should be able to:

• identify forms of taxation in the resources sector and assess the advantages and disadvantages of various approaches to different stakeholders
• discuss the key concepts associated with the analysis and evaluation of a new mining project, expansion or change to an existing project
• discuss the DCF technique for valuing a mining project, including its advantages over other methods and key issues to be considered in its use
• construct a simple model for a mining operation which will forecast a profit and loss, and cash flow outcome.

Case study – Reserves, project definitions and project cash flows

On successful completion of this topic, students should be able to:

• identify the key studies and other work required to bring a project to a definitive (bankable) feasibility study level
• create a life-of-mine model
• construct a project cash flow
• calculate the NPV of a project
• assess the viability of a project, based on cash flow and NPV calculations.

Mineral markets and pricing

On successful completion of this topic, students should be able to:

• explain the mechanism by which buyers and sellers combine to set prices for various commodities
• outline the various mechanisms for trading in commodities
• describe the main supply and demand factors that impact upon the pricing (historical and forecast) of mineral commodities

Share evaluation

On successful completion of this topic, students should be able to:

• distinguish between price and value
• explain why the value of an asset can vary depending on the investors involved
• convert a $ million valuation into a per share number
• value a company by referencing the share price of a similar listed company
• describe and appropriately apply flow-based valuation measures.

RECTUS attendance certificate will be issued to all attendees completing minimum of 80% of the total course duration