About this course...
Recent advances in finance theory and risk management have heavily influenced investment decision-making in the finance and insurance industries. Building on the discounted cash flow (DCF) technique, these advances allow valuation professionals to improve their economic and risk analysis via sophisticated cash flow models that combine dynamic descriptions of uncertainty with the ability to manage these uncertainties using flexible design and operational strategies. Non-financial industries, such as power generation and pharmaceuticals, are now applying these concepts to generate new investment insights and improve project analysis and management. Mining and petroleum projects are ideally suited to these same techniques and many natural resource firms are beginning to incorporate these ideas into their project valuation and management practice.
The three-day Using Dynamic DCF and Real Options to Value, Manage, and Design Mining Projects course will combine an innovative hands-on instruction style and real-world case studies to teach you how to:
- Use these new concepts to develop a consistent, market-based valuation approach that can differentiate and value different projects and different project designs according to their unique cash flow uncertainty and risk characteristics;
- Identify important elements of project structure, such as management flexibility and operational costs, and understand how they influence project value;
- Examine how the terms of taxation and finance distribute project uncertainty and risk between equity, government, and creditor cash flow streams and how this affects the value and return of each stream;
- Move from using a conventional valuation approach based on a static cash flow model and ad-hoc approaches to adjusting for and valuing risk to a dynamic valuation approach that can more fully represent the variability of the mining and petroleum project environment and the options that may exist to limit and take advantage of that variability;
- Build confidence with practical examples so you can adapt these methods to a wide range of projects and situations.
Who should attend?
The course is designed for mining and petroleum industry managers, geologists, engineers, bankers, analysts, and government officials involved in evaluating, designing, or managing projects or dealing with investment risk. Participants do not require advanced mathematical skills to understand and apply the course material. However, to get the most from the course, they should be familiar with:
- Basic statistical concepts such as variance, standard deviation, and covariance;
- Constructing a traditional discounted cash flow valuation;
- Introductory financial concepts such as the time value of money and risk-adjusted discounting.
Continuing education credit
Colorado School of Mines will award 2.0 Continuing Education Units (CEUs) and a Certificate upon successful completion of this course.
The course will be taught on the campus of Colorado School of Mines in Golden (near Denver), Colorado USA. Learn more...
Fees and registration
Registration for this course is open now. Enrollment is limited; therefore, applications will be accepted in the order received. Full information about fees, options, and payment methods is available. Learn more...
Travel and accommodations
Registrants are responsible for their own travel arrangements, transportation, lodging, and meals. Additional information is available through the links below.
The course was developed jointly by Dr. Michael Samis of Ernst and Young LLP in Toronto, Canada and by Dr. Graham Davis at Colorado School of Mines. Dr. Samis will provide instruction for this session of the course. Learn more...
Course participants must bring to class a laptop computer with specific software. Further information is available on the Topics and Materials page of this website. Learn more...