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Economic Guidelines
December 4-9, 2011 Professional Development Seminar Department
of Geological Sciences & Geological Engineering
The seminar is intended for participants with responsibilities for mineral exploration. Project geologists, exploration managers, corporate planners, and government policy analysts will find it to be a useful opportunity to study, learn and utilize economic evaluation principles as applied to support exploration and acquisition decisions. The seminar will develop those evaluation skills which enable explorationists to translate geological knowledge and expertise into economic criteria. The purpose is to encourage successful exploration by providing economic support for exploration investment and planning decisions; improving communications within and among exploration groups and mining companies; assisting participants in asserting control over their exploration activities; and providing an improved basis for mineral policy assessments in government.
The following topics will be included: Exploration Economics and Evaluation the mineral supply process; mining company planning; evaluating costs, risks, and returns; the investment decision process; economic evaluation techniques. Concept of Cash Flow specification of currency; end-of-year convention; taxation considerations; constant and current money values; real changes in future economic conditions. Cash Flow Criteria total profit; project size; operating margin; competitive cost position; payback period. Time Value of Money cost of capital; economic justification of investment; time value relationships. Discounted Cash Flow Methods classification of alternatives; equivalent annual value; net present value; present value ratio; rate of return; comparative strengths and weaknesses; the problem of contradictory results. Mining Taxation
Considerations effect of
taxation on individual cost and benefit elements; individual project and
integrated company tax bases; mining taxation systems in Sensitivity and Risk Analysis Techniques analyzing the possible effects of uncertain parameters; definition of strategic variables; answering 'what if' questions; traditional risk analysis methods; the probabilistic concept of risk; estimating probabilities; analytical risk analysis techniques; the monte carlo simulation technique; risk adjusted cost of capital. Evaluation of Exploration Projects the mineral conversion process; basic information requirements; technically feasible alternatives; estimation of ore reserves; estimation of revenue; net smelter return conditions; estimation of capital and operating costs; inflation and exchange rate considerations. Exploration Planning
Issues establishing minimum
acceptable exploration target conditions; examining the returns from
exploration success; comparing the economics of finding and acquiring ore
reserves; structuring exploration agreements. Exploration Economics
and Strategies role of
exploration in the mining company; international case study appraisals of
exploration economics; historical trends in exploration expenditure,
technological advances and changing exploration targets; assessing costs,
risks, and returns for exploration environments of interests.
The seminar begins Sunday afternoon and
ends at noon on the following Friday.
Morning Sessions are 8:30am - 12:00pm
Lectures and discussions will focus on
exploration, development and acquisition investment issues. Emphasis is
placed on small group work interspersed with formal lectures and open
discussions. The course is designed to sequentially
introduce relevant evaluation techniques culminating in full holistic
evaluation of mineral investment opportunities by the end of the week. The workshop sessions address a wide range
of international case studies, drawing on the seminar leader's experience,
particularly in Participants should bring a calculator or a
laptop computer. A comprehensive 400-page set of seminar notes and other
seminar materials will be distributed at the beginning of the seminar
The seminar will be led by Dr. Michael
Doggett. He is President of HanOcci Mining Advisors
Inc. based in Dr. Doggett is an Adjunct Professor in the
Department of Geological Sciences and Geological Engineering and in the
Robert M .Buchan Department of Mining at Queen's University where he served
as Director of the Mineral Exploration Master's Program from 1997 to 2007.
He holds degrees in geology and mineral economics from Dr. Doggett has taught professional
development courses in mineral project evaluation and exploration strategic
planning to more than 1200 professionals in a dozen countries.
The seminar will be held at the Four Points
Sheraton, 285 King Street East | Kingston | ON | CAN | K7L 3B1 | 613.544.4434
Registration Fee: : $4,200 + 13% HST =
$4,746 (Canadian dollars) Department of Geological Sciences and Geological
Engineering
For further information or to
register, please contact:
Seminar enrolment will be limited to a
maximum of 25 registrants.
Queen's University is situated in the city
of Access by car from Updated 19 August 2011. |
