Volatility in commodity prices and financial markets compounded by technical uncertainty make it difficult for professionals in the natural resource industries to assess the risk exposures and factors influencing their Strategic Capital Management (“SCM”) decisions.  Integrated Valuation and Risk Modelling (“IVRM”) methods are a toolkit comprising advanced finance theory, risk management concepts, decision analytics, statistical analysis and numerical methods that can analyze a wide range of SCM problems.  Types of applications include competing project development strategies, innovative financing structures, mergers and acquisitions, corporate portfolio risk and enterprise risk management. 

This workshop demonstrates the importance of using dynamic IVRM methods to extend the static cash flow models commonly used in industry so that an investment decision considers a wide range of future business environments.  It includes an extended section discussing how to model the forecast uncertainty characteristics for a range of metals and energy commodities.  Case studies illustrate important IVRM concepts and their application to industry problems.  These studies include: 

a)  Value creation during exploration and early-stage engineering studies 

b)  The value and risk management benefits of staged development 

c)  Financing a project with a streaming agreement 

Professionals attending this workshop will improve their understanding of how dynamic cash flow models and the IVRM framework can recognize the unique cash flow risk characteristics of individual projects and how these characteristics influence value and risk at both a project and corporate portfolio level. 

The course will be of interest to professionals involved with corporate development, financial reporting, operations, project design, risk management, and corporate strategy.