M5: Financial Modelling for Mining Companies (3-5 days)
Financial Modelling for mining projects including project evaluation and finance.
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Pre-requisitesAlthough not mandatory, attendees will get a lot more out this course if they complete some online training in Excel functions before attending. We have partnered with Excel University to provide high-quality, low-cost online training and recommend their Volume 2 Course as good preparation for this course. If attendees are a little less familiar with Excel, Volume 1 would also very useful.
What you get from this course
- To provide participants with a good working knowledge of the most useful functions in Excel for financial modelling in the mining industry.
- To provide participants with a sound understanding of mining financial modelling and project evaluation concepts.
- To provide participants with experience in designing solutions to real-world financial modelling challenges.
Mining projects face many unique challenges: high capital costs, long-term projects, and high variability in commodity prices.
This course focuses on providing delegates with an understanding of both the principles of financial modelling for mining projects and the practical application of these to real-world situations through the use of Excel.
The course then builds upon the principles and practices learned to apply these to build sophisticated analytical models that are robust, flexible and user-friendly.
Day 1: Advanced Excel
- Working with large data sets
- Summarising and aggregating data
- Extracting data that matches criteria using flexible formulas
- Error handling
- Ways of improving structure
- Techniques for keeping formulas consistent yet flexible
- Combining and splitting cells according to the content they contain
- Advanced techniques for creating automatically expanding charts and ranges
- Introduction to macros & when to use these
We then apply and practise these functions during the remainder of the course.
3-4 Days: Financial Modelling and Project Evaluation
Participants will build up a full financial model for a mining project from scratch. The example used is an iron ore project however the same financial modelling principles can be applied to any mining project model.
As such, this course is designed to be as close to real life as possible.
Lastly, the course describes how to both detect and prevent errors from occurring.
Part 1: Financial Modelling Principles & Practices
Introduction to Financial Modelling
- What is a model?
- Spreadsheet models
- Types of mining sector models
Principles of Financial Modelling
- Steps in model building
- Best practice guidelines and spreadsheet modelling standards
- Designing for flexibility and scalability
- Designing for consistency
- Designing for usability and functionality
- Designing checks and balances
- Optimising your environment for rapid financial modelling
Part 2: Applications of Financial Modelling
Principles of Risk and Return
- Capital Structures
- Weighted Average Cost of Capital (WACC)
- Cost of Equity Capital: What does this mean and how do you calculate it?
Project Evaluation: Theory and Application
- Recap of mining accounting principles
- Role of project evaluation: how do you evaluate a project? NPV, IRR, payback, VIR
- Approaches to project evaluation & feasibility studies: discover different alternatives
- Why free cash flow is critical for project evaluation and how to calculate this
- Economic limit & life of mine calculation
- Discover different techniques for forecasting future performance
- Learn how to model capital expenditure and include this in the financial model
- Learn new techniques for modelling uncertainty and including this in your calculations
- Learn the principles of discounted cash flow modelling and why this is so popular in financial modelling
- Sensitivity analysis and an introduction to Monte Carlo simulation and stochastic modelling: how and when would these techniques be most useful
- Introduction to alternative project evaluation methodologies such as real options
- Interpreting & presenting the results of your analysis to key decision-makers
Case Study: Income Model
Design and build an income statement using historical data and assumptions about future performance.
Case Study: 3-way Financial Models
Building on the income model developed, design and build a forecast that includes the balance sheet and cash flow. Learn how to resolve circular references in interest calculations.
Case Study: Financial Ratios
Review the financial performance of a company using financial ratios.
Case Study: Using Historical data to Forecast Future Performance
Use a variety of Excel functionality and techniques to forecast future performance based on historical data.
Case Study: Company Valuation
Perform a discounted cash flow valuation of a sample business.
Case Study: Scenarios & Sensitivities
Identify key risk areas and then incorporate sensitivity factors for these. Build a sophisticated scenario manager to run multiple scenarios and highlight the results.
Case Study: Monte Carlo Simulation & Stochastic Modelling
Incorporate Monte Carlo simulation and techniques into the financial models to simulate multiple sources of uncertainty.
Case Study: Model Optimisation
Use Excel’s tools to optimise the models results and perform breakeven analysis.
Part 3: Control of Financial Models
Financial Model Auditing/Review
- Why audit?
- Excel’s auditing tools
- Automated testing tools: role, purpose and limitations, demonstration
- Model documentation
Financial Modelling Software
- Overview: purpose, advantages, disadvantages, demonstration
Mining clients who have trained with us:
- Citic Pacific
Who Should Attend?
- Business & Finance Analysts
- Investment & Corporate Bankers
- Finance staff
- Mine Accountants
- Project Managers
- Business Development Managers
- Mining Engineers
- Mine Managers
Masters (Applied Finance), B.Com (Accounting & Information Systems), FAIM, F Fin, MAICD, CISA, MS Excel Expert
Jeff Robson is the Principal and Founding Director of Access Analytic, a specialist consultancy that focuses on financial modelling, forecasting, valuation, model auditing, and management reporting for clients throughout the world.
He is skilled in the development and maintenance of analytical tools and financial models for middle-market mining companies to large corporates, at all levels of complexity, in both domestic and international settings.
He has worked extensively with many mining companies (both producers and explorers) over many years. He has trained mining specialists from a wide variety of companies including BHPBilliton, Rio Tinto, Glencore, Wesfarmers, Gindalbie Metals, Moly Mines etc.
He provides training in financial modelling for mining companies throughout the world and is the author of a number of white papers on financial modelling.
Feedback from Previous Participants
|Feedback||Initials & Position|
|“Well done. Enjoyed it and worth every dollar.”||M.D., Financial Analyst, Citic Pacific|
|“The most fantastic program for me in 2015.”||H.H., Treasury Analyst, Citic Pacific|
|“Enjoyed the course. Good learning experience. Jeff was really very good.”||A.V., Financial Analyst, Citic Pacific|
|“Jeff is a friendly and kind trainer. He is very knowledgeable about the course, definitely recommend to someone that require improvements on financial reportings.”||Y.D., Financial Accountant, Citic Pacific|
Benefits & Inclusions
|Practical: Highly experienced facilitators who actively and regularly consult to clients also.|
|Applicable: apply what you learn to your job to further your career.|
|Hands-on: the course is designed to provide maximum hands-on experience.|
|Passionate: Our facilitators love this subject!|
|Clear: we specialise in translating complex subjects into concepts that are easy to understand.|
|On-going help: you can always e-mail the facilitator.|
|CD/USB: includes worked examples, suggested solutions, reference materials, and a large variety of templates that can be immediately applied to kick-start your projects.|
|Comprehensive course notes.|
|Networking: meet industry peers and hear how they approach this subject.|
|Certificate of completion.|
|… and much more!|
Clients who have 3-4 or more people interested in this course normally prefer to run this course on an in-house basis in their offices.
We can bring all the equipment for up to 8 people so all you need is a room!
- Flexibility: we can combine content from multiple courses to create a custom course just for you, add-on a workshop or some mentoring sessions then run everything at the times that suit you.
- Timing options: if you’re in Perth, we can split courses into half or single days and schedule these at times to suit you
- No hidden extras: our fixed fee includes all materials and equipment costs for up to 10 participants
- Cost effective: no extra fees for extra participants (maximum of 8 per session)
In-House Details & Pricing
- Structure: half-day or full-day sessions
- Location: all courses are available in-house, many are also available in open sessions
- Class size: strictly limited to 10 to allow maximum interaction with the facilitator
- Provided: projector, laptops, manual, CD
- In-house Fees: contact us today to discuss your requirements
In-house Course Fees
Call us on +61 8 6210 8500 to discuss your requirements.
– We are happy to customise our courses to suit your requirements
– A 10% discount applies when booking 10+ full days of training in any 30 day period
– Many courses can also be split into half-days (please enquire)
– Fees for locations outside of Perth do not include equipment
|B5||Financial Modelling for Oil & Gas (4 days)
This course covers oil and gas financial modelling and project evaluation concepts, combined with practical experience in designing solutions to real-world financial modelling challenges. Learn how to build sophisticated analytical models that are robust, flexible and user-friendly and then use these to analyse oil & gas projects for potential investment.
|C1||Excel VBA Training Course (3 days)
This VBA course is an introduction to VBA programming for automating accounting and finance functions.