Presentation

Mining companies are exposed to many risks that must be considered when managing a corporate mining portfolio. Financial, technical, and execution risks uniquely impact each portfolio project, whether these projects are in the exploration pipeline, operating assets, brownfield extensions, innovation projects, or sub-economic resource options. Assessing the risk tradeoffs of each project and its impact…

Mining companies often group projects in their corporate portfolio into exploration pipeline, innovation, operating assets, brownfields, and sub-economic resource categories. However, it is not often recognized that these groupings have characteristic cash flow risk levels allowing for a useful risk-based representation of a corporate project portfolio. This presentation proposes separating project risk into technical and…

Mining companies fund project development with a financing package combining equity, debt, and possibly multiple forms of alternative finance. Competing financing packages may have substantially different costs, benefits, and risks due to each package’s distinctive mix of constant and variable cash flows. Dynamic cash flow modelling is a powerful tool that helps companies understand the economic benefits…

Session Chair: Michael Samis (SCM Decisions) Panelists: Matthew Rosales (Hartree Partners), Oliver Wright (DL Piper), Justin Anderson (Trident Royalties) Mining projects often draw from several financing sources to fund development. There are different costs and benefits associated with equity, debt, and alternative finance that need to be considered when putting together a financing package. This session considers…

Abstract: The capital required to develop a mining project is commonly raised from several different sources of financing. Equity, debt, and alternative financing methods have different costs and benefits that a mine builder must consider when putting together a financing package able to withstand volatile future business environments. This session reviews the characteristics of different…

Abstract:  Numerous financing methods are used to finance mining project development ranging from traditional project debt to alternative financing arrangements tied to metal prices.  Static cash flow models are often used to determine a project’s ability to fulfill its financing obligations by calculating internal rate of return and financing ratios.  However, this modelling approach has a weakness in…

Mining projects are financed by numerous methods ranging from traditional project debt to alternative financing arrangements tied to metal prices.  A project’s ability to fulfill its financing obligations are often assessed with aa static cash flow model that calculates internal rate of return and financing ratios.  However, this modelling approach has a weakness in that investment performance…

Greenfield and brownfield exploration is fundamental for a successful mining industry.  Yet, it is hard to find mining professionals who can clearly articulate how exploration creates value.  This presentation corrects this oversight with a simple one-period model that demonstrates how exploration is a learning option that creates value through information-gathering.  A case study, loosely based on Seabridge Gold’s…