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Mining Finance Masterclass - North America 2013


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Mining Finance Masterclass - North America 2013

  1. 1. RE Fe $4 Finance be GI b 1 fo SA re masterclass ST 5 a ER nd VE 50Mining finance explained New York | May 6 - 7, 2013Vancouver | May 9 - 10, 2013Course highlights• Learn the terminology of mining finance• Understand how mining finance differs to equity investments and corporate finance• Discover when finance is required throughout the different stages of mine development• Identify who requires finance and how it is provided• Grasp how finance is structured in the mining industry• Understand the risks involved in mining finance• Save hours of research time and practise what you learn in class with case studies based on real-life scenarios Tel +44 (0)20 7216 6056 EmailLimited spaces available on each course In association Albert House, 1 Singer Street, London, EC2A 4BQ, UK Organised by
  2. 2. The Mining Finance Masterclass is an intensive two-day training course that will teach youeverything you need to know about how a mine is financed. You won’t walk away a financier butyou will leave with the knowledge to understand what a financier does. In just two days you willdiscover the different ways a mine raises capital throughout its lifecycle, when finance isrequired, where finance is required, how it is structured, who requires it and how it is provided.Finance in mining can be daunting when you are not from a financial background. Not understanding theterminology, the structure, the risks or why finance is required can mean you are excluded from certaindiscussions. The Mining Finance Masterclass will give you the knowledge you need to understand miningfinance and take an active role in discussions about the subject, speak the industry language and be in abetter position to spot opportunities and threats.You will be led through the world of mining finance by Graham McCartney, a seasoned professional whohas held senior positions in mining companies, banks and advisory firms. Graham now runs a successfulconsultancy business advising banks and mining companies on mining finance. London • Hong Kong • New York • Toronto • Vancouver • Jakarta • SingaporeRecent attendees to MiningFinance Masterclass include : Your course leaderAIMROC WhoAnglo AmericanArcelorMittal should Graham McCartneyArchean GroupBBA attend: Graham graduated from Nottingham University UK in 1979 with an Honours degree in Mining Engineering and from the Royal School of Mines UK in 1984Blake Cassels and Graydon • Mining companies with a Masters in Mineral Production Management.Brigus GoldCanaccord Genuity • Banks and other During nearly 30 years in the mining industry Graham has gained invaluableCompass Group Management lending institutions international experience across the entire industry spectrum, combiningDMM Advisory Group industry expertise (Zambian copper and South African gold) with businessDrillcorp Africa • Legal andEarthstone Resources accounting firms evaluation (Gold Fields of South Africa, BP Minerals) and mining finance (WarriorERM UK • Government: International and ING Barings).Finnish Industry Investment mining ministries & After ten years working in various mining companies, Graham joined the metals and mining team of INGFocus Ventures regulatorsGowlings UK Bank in Amsterdam, later heading up its metals and mining finance department in London as Director ofGPR Dehler • Consultants & Metals & Mining at ING Barings. During this time Graham worked both as an advisor and as an arranger,GRATA Law Firm advisers covering a vast range of transactions. These included consulting on IPO’s (technical consultant), financingHansa Resources • Investors in mining the modernisation of the Cuban nickel industry (sole advisor & underwriter), financing an aluminiumHatch • Equipment and smelter in Iceland (lead-arranger), conducting a bankability study for an Omani aluminium smelter (soleHermes Fund ManagersHUB International service providers to advisor), financing rehabilitation of Russian steel assets (sole arranger), refinancing UK coal assetsInvensys miners (lead-arranger) and evaluating German coal assets (sole advisor).Iron Creek Capital These are just some of the transactions successfully concluded alongside a variety of other steel, ferroalloyJDS Energy & MiningJonah Capital and base metal transactions, using a variety of structured debt products including structured trade finance,Kiewit Corporation Register pre-export finance & project finance as well as raising equity capital.KPMG FOUR Since 2005 Graham has been running his own metals & mining finance consultancy, the principal activity ofLeft Beteiligungs DELEGATES which has been the provision of corporate finance and advisory services to a niche market of smaller banksLondon Metal Exchange and theLydian International and mining companies covering industry specific strategic and financial advice, usually with respect toMcLean & Kerr FIFTH comes raising debt and/or equity capital.Metal Corporation of ChinaOne Asia Resources FREEOntario Mininstry FinancePeter Kiewit InfrastructurePorcupine Engineering Services In-housePT Delta ResourcesQuantum PacificResource Capital Funds Do you need to train more than seven people? It could be more cost-effective to masterclassRevett Minerals hold this course in your office exclusively forRio Tinto your team.Royal Gold Call Matt Beech on +44 (0)20 7216 6080Samco Gold or email matt.beech@resourcefulevents.comSamsung C&TScandinavian Highlands for more information. About Resourceful EventsSeverin Mining Resourceful Events is a global leader in providing internationalSierra Rutile business conferences and training so you can achieve yourSNC LavalinSRK Consulting Register now! networking, information gathering and development goals. An associate company of Mines and Money Events and AspermontTethyan Copper Company Call Rebecka Obiago onTocqueville Capital Management Media it brings together years of experience in the commoditiesTrimble Navigation +44 (0)20 7216 6056 industries. Through market leading intelligence our conferencesUniversity of Brighton or email and training will help you keep up to date with cutting edgeVisa Consultores information about your industry.YSV VenturesYukon Albert House, 1 Singer Street, London, EC2A 4BQ, UK Organised by Tel : +44 (0)20 7216 6060 Fax: +44 (0)20 7216 6050
  3. 3. Day 1 Day 2What is mining finance? An introduction to the fundamentals Where is mining finance required? How location affects • An introduction to mining finance terminology delivered price & value • Corporate finance and equity investment vs mining finance The global dynamics of mining finance –Mining finance industry overview: the perception of country risk and its costThe value of global mining capital raised in 2011 • OECD versus emerging markets • OECD sponsors in emerging marketsBy country By stage of mining life-cycle • Emerging market sponsors in OECD countries • OECD versus emerging markets • Exploration (private placement & • Emerging market sponsors in emerging markets • Producers versus consumers company funded) • The price of perceived country riskBy commodity type • Development (equity IPOs & secondary • Gold & precious metals & gemstones issues, project finance, other structured Transport, logistics & infrastructure – • Non-ferrous base metals lending) long run marginal costing as a price driver • Ferrous metals including FeOre, nickel & • Production (corporate debt, balance sheet • Bulk versus high-value commodities chrome lending, trade finance & GWC) • Globalization of resource demand & supply through swing production & trade • Coal • Growth & expansion (M&A, organic v. • The cost of infrastructure • Other difficult non-commodity finance inorganic, mine expansion) • The cost of transport and industrial minerals • Their effect on long run marginal costs & pricesBy finance type China in the case of coal – the game changing global dynamics • Equity versus debt • Increasing demand • Project finance • Limited supply • Trade & commodity finance • Impact on global trade patterns • Corporate finance • Their effect on the long-run marginal cost of supply and global pricesWhen is mining finance required? What do the various stagesof mine development mean for mining finance? Who requires & who provides mining finance? The demand & supply balance in mining financeEarly-stage exploration Development • Discovery stage • Development stage Who requires mining finance? How risk perception and net worth • Risk level • Risk level affects leverage capacity and capital structure • Typical balance sheet • Typical balance sheet • Finance options • Finance options • Junior explorers • Funding options • Funding options • Mid-tier miners • Capital requirements • Capital requirements • Major multinationals • Structure • Structure • Mining companies entering emerging markets • Mining companies in emerging marketsPre-development Production • Definition stage • Production stage Who provides mining finance? How differing risk perspectives • Risk level • Risk level create multi-sourced financing • Typical balance sheet • Typical balance sheet • Finance options • Finance options Equity • Funding options • Funding options • Private equity • Capital requirements • Capital requirements • Public equity • Structure • Structure • Local equity • Industry partners • Other sources: multilaterals – banks – institutionsWhy is mining finance required? Risk & capital allocation Debtthrough the mining finance cycle • Project finance: tied – untied • Corporate financeThe risk in capital allocation – how global dynamics, sponsor strength and • Trade financemineral economics influence risk in mining finance • Country & transfer risk How is mining finance structured? Risk mitigation & • Completion risk management, the key to structured finance • Performance risk Country risk mitigantsMarket cycles & cash flow – how cycles combine to create the mining finance cycle • Insurance • Co-financing • The equity cycle • Loan structure • The commodity cycle Completion risk mitigants • The mining finance cycle • The due-diligence processCapital allocation – how the mining finance cycle affects capital allocation • Resource and reserve estimates • M&A bias • Scoping pre-feasibility and feasibility studies • Exploration bias • Capital cost estimates • Development bias • Owner, lumpsum, EPCM and turnkey projects • Expansion bias • Mechanical and financial completion • Completion guarantees • The effect of tenor on performance risk Performance risk mitigants • Loan maturities and tenors for different types of financeCase study: Exploration and pre-development • The role of pre-export financeYou will be given a scenario where you are a bank approached by the board of a junior • Project financeexploration company based in central Africa looking for finance. You must identify the Estimating the cost of mining financerisks involved, how the risks can be mitigated and what the most suitable financing structure • Effects of leverage on equity returnswould be. • The weighted average cost of capital (WACC) • What are the factors that can affect your WACC What drives the debt capacity of a mining project or company? • Reserves, mine life and loan life • Historic versus projected commodity prices • Operating costs & the cost curve Finance • Lending criteria masterclass How to evaluate debt capacity • The “bankable” feasibility study Case study: Project finance You will split into teams of miners and bankers and be given a scenario for a potential mine development. The miners must assess this investment based on the soft market facts and the parameters of the pre feasibility study and decide if it is likely to meet their WACC hurdle rates before committing to a full feasibility study. The bankers will Register online at analyse the same scenario, explore how the risks can be mitigated and decide if there is any capital allocation in the form of equity and/or debt capacity worth pursuing. Case study: M&A (post-course) Albert House, 1 Singer Street You will be split into teams of miners and bankers and be given a scenario for a potential M&A transaction. The miners must assess this investment based on the soft London, EC2A 4BQ, UK market facts and decide if it will meet WACC hurdle rates before passing it on to Tel : +44 (0)20 7216 6060 Fax: +44 (0)20 7216 6050 business development for a full analysis. The bankers must decide how to fund and structure the finance required, providing an indicative term sheet.
  4. 4. Please complete the form below in BLOCK CAPITALS (duplicate as necessary) and return to Customer Services (details below right) Registration form HOW TO BOOK YOUR COURSE PLACE VENUE INFORMATION Finance Tel Email Please contact customer services masterclass for venue details +44 (0) 20 7216 6060 Customer Services: Fax Mail: Albert House, Email: 1 Singer Street +44 (0) 20 7216 6050 London, EC2A 4BQ, UK Online: Online: www.mining-finance-masterclass.comI will attend: New York – May 6-7, 2013 Vancouver – May 9-10, 2013 Book by Feb 15 Book by Mar 15 Book by Apr 19 FULL PRICE Book by Feb 15 Book by Mar 15 Book by Apr 19 FULL PRICE ✓ please tick PRICE US$2,595 US$2,745 US$2,895 US$3,045 C$2,595 C$2,745 C$2,895 C$3,045 SAVE US$450 US$300 US$150 – C$450 C$300 C$150 – To register for any of these events, complete this form and return to the email address above or you can register directly on the website www.mining-finance-masterclass.comEarly bird rates are contingent upon payment being received within 14 days from the registration date.Tax information: All prices are exclusive of tax.Please enter your details below to register for delegate place(s) for Mining Finance Masterclass:Company / organisation detailsCompany Approving Manager’s NameAddress 1 Approving Manager’s Job TitleAddress 2 TelephoneAddress 3 FaxCity CountyPost / Zip Code CountryDelegate 1 – details Terms & ConditionsName (1) Tax will not be added to you invoice. The amount billed will be exclusive of tax. It is your responsibility to pay tax for your training where applicable..Job title (2) The Mining Finance Masterclass does not allow cancellations, transfers or provide refunds once a booking is made. Should you be unable to attend, payment is still required in full. However, a substitute person is welcome to attend in your place at no extra cost.Mobile (3) Mining Finance Masterclass reserves the right to change the content of the programme without notice including the substitution, alteration or cancellation of speakers and / or topics and / or the alteration of the dates of the event. Mining Finance Masterclass is not responsible for any loss orEmail damage related to the alteration or cancellation of speakers, topics or dates of the event. (4) Your invoice must be paid within 14 days of issue. Failure to pay your invoice within these terms may mean you lose your place in the course.Delegate 2 – details (5) By registering for the Mining Finance Masterclass you are agreeing to these terms and conditions.Name (6) On-site payment / registration will be subject to a $150 USD/CAD + VAT surcharge.Job title Privacy Statement In registering to attend Mining Finance Masterclass, relevant details may be forwarded on to sponsors/exhibitors of the event.Mobile If you do not wish your details to be used in this way, please indicate so by ticking here.Email Payment Details (Tick one only)Delegate 3 – details Accept enclosed cheque made payable to Mines and Money Events LtdName Pay by credit/debit card – please fill in details below (Credit/debit card payment will be charged in GBP)Job title Please invoice meMobileEmail Card Type * Discounts cannot be used in conjunctionDelegate 4 – details Card No with other offers.Name Cardholders NameJob titleMobile Cardholders SignatureEmail Expiry Date (mm/yy) Card Security Number (last three digits on the signature strip on reverse of card)Delegate 5 – detailsName Fre Payment (please indicate the amount and currency, USD or CAD)Job title Fre e Date eMobile Cardholder’s AddressEmail Albert House, 1 Singer Street Organised by London, EC2A 4BQ, UK Tel: +44 (0)20 7216 6060 Fax: +44 (0)20 7216 6050