Iran Mines and mining industry series

2. m
• m

3. ,
• m

4. Ques(on #1
How Iranian Companies take
decision for its finance and
investments strategies?

5. Ques(on #2
How Interna(onal Companies take
decision for its finance and
investments strategies?

6. Ques(on #3
What is The role of companies’
capital Structure for finance and
investment strategies?

7. Ques(on #4
What is your company's capital
structure?

8. Capital Structure and Cost of Capital
• What is your capital structure?
Equity
100%
Equity
83%
Debt
17%
Equity
45%
Debt
55%

9. Capital Structure and Cost of Capital
• What is the cost of capital?
Equity
83%
Debt
17%
Cost of Equity : Re
Cost of Debt: Rd

10. Capital Structure and Cost of Capital
• Weighted Average Cost of Capital (WACC)
• The WACC of company show us the poten(al
of compe((veness with rivals!
• High WACC means you need High Margin and
High IRR range projects.
• Is it good for you?

11. Capital Structure and Cost of Capital

12. Capital Structure and Cost of Capital

13. Capital Structure and Cost of Capital

14. Capital Structure and Cost of Capital

15. Capital Structure and Cost of Capital
What is the Iranian companies’ WACC?
What about your business?
How about Australian or Brazilian Rivals ?

16. Capital Structure and Cost of Capital

17. Glencore PLC WACC

18. BHP WACC

19. Rio Rinto WACC

20. CHINA SHEHUMA WACC

21. Our Future and WACC
• My own money?
• Domes(c Finance?
• Interna(onal Finance?
• Domes(c Investment?
• Interna(onal Investment?
• Mergers and Acquisi(on ? Domes(c of
Interna(onal

22. Thank you