MIN350H1

Mineral Economics

Course covers the evaluation of mineral projects, mining operations, and mining companies. Topics will include: discounted cash flow techniques including net present value (NPV), internal rate of return (IRR), net asset value (NAV); feasibility studies and due diligence reports; reserves and resources, data sources; metal prices and markets; cash flow modeling including revenue calculations, capital and operating costs, taxes, depreciation, inflation; risk and risk assessment, discount rates, red flags, checklists; financing. Guest lectures will provide industry insights into financing, fund raising, consulting, project control, and evaluation. There are two assignments: review of an annual report; due diligence report and net asset value calculation.