Tim Alch of Behre Dolbear discussed the importance of independent technical due diligence in mining projects. He outlined the key issues that evaluators should examine, including recent trends, resource classification standards, engineering study levels, risk categories, and the lengthy process from discovery to production. Independent review is important given the numerous technical, economic, and operating variables that can impact a project's viability.
presentation about Mining costs and prices of minerals
Cairo University faculty of Engineering Mining Department 2015
WE TALK about :
Costs of mining
Prices of minerals
Risk analysis
Submitted for :
Prof. Dr .Mohamed El Wageh
By:
Ahmed Mohamed Wassel
Mohamed Abdel Nabi Essa
Mahmoud Mustafa Khallaf
Managing Risk and Cost in Mining Infrastructure Development - Sarah Thomas, P...Mining On Top
Managing Risk and Cost in Mining Infrastructure Development
Speaker: Sarah Thomas, Partner, Pinsent Mason
Director, Vale
Mining On Top: Africa - London Summit
24-26 June 2014 | London
This document discusses various mining methods including surface mining techniques like alluvial mining and open-cast mining as well as underground mining techniques. It describes alluvial mining methods like using pans, rockers, and sluicing. For open-cast mining it discusses loading by hand or machine and different open-cast mining methods. Underground mining techniques discussed include room and pillar mining, open stoping methods using timber supports or waste filling, shrinkage stoping, and caving methods like top slicing and block caving.
Challenges, Risks & Opportunities For the Mining Industry in the Americas Tim Alch
While optimistic about the longer term outlook, 2013 has been tough for investors and managers. Rising costs, lower prices, slower growth in China, etc. and non-technical risks such as changing government regulations, social license and NIMBY have hurt returns, investment and interest.
Geotechnical and Business Issues and Risks when Evaluating Mineral Prospects Tim Alch
This presentation given at a Baker & McKenzie Seminar in Toronto highlights the variable, multiple issues and risks impacting the global exploration and mining business today
Macquarie Gold, Managing Director, Dr Ted AmblerSymposium
Macquarie Gold Limited is seeking to list on the ASX to fund development of the Adelong Gold Field in New South Wales. The project includes a 120,000 ounce JORC-compliant resource that is ready for open cut mining, as well as exploration licenses covering the historic field that produced over 21 tonnes of gold. Funds from the proposed $12.5 million IPO will be used to construct a processing plant and mine the known resource, with plans to produce an average of 15,000 ounces of gold per year. Drilling will also aim to expand resources across the field and increase the total to over 1 million ounces.
Millrock has identified six drill target areas at its Liberty Bell gold project in Alaska. The highest priority target, the Airstrip Target, is ready to be drilled. Millrock's Goodpaster gold project is located in a prolific gold district of Alaska that contains the high-grade Pogo gold mine. Millrock has staked a large land position covering multiple trends of gold occurrences near the Pogo mine, presenting opportunities to discover new deposits similar to Pogo.
Millrock has staked a large land position in Alaska's Goodpaster Gold District, located within the prolific Tintina Gold Province. The district is home to Northern Star's high-grade underground Pogo Gold Mine, which has produced over 4 million ounces of gold to date. Millrock's claims surround and extend mineralized trends known to host gold occurrences and prospects, yet have seen relatively little modern exploration. Millrock believes there is strong potential to discover additional high-grade gold deposits within the district similar to Pogo.
presentation about Mining costs and prices of minerals
Cairo University faculty of Engineering Mining Department 2015
WE TALK about :
Costs of mining
Prices of minerals
Risk analysis
Submitted for :
Prof. Dr .Mohamed El Wageh
By:
Ahmed Mohamed Wassel
Mohamed Abdel Nabi Essa
Mahmoud Mustafa Khallaf
Managing Risk and Cost in Mining Infrastructure Development - Sarah Thomas, P...Mining On Top
Managing Risk and Cost in Mining Infrastructure Development
Speaker: Sarah Thomas, Partner, Pinsent Mason
Director, Vale
Mining On Top: Africa - London Summit
24-26 June 2014 | London
This document discusses various mining methods including surface mining techniques like alluvial mining and open-cast mining as well as underground mining techniques. It describes alluvial mining methods like using pans, rockers, and sluicing. For open-cast mining it discusses loading by hand or machine and different open-cast mining methods. Underground mining techniques discussed include room and pillar mining, open stoping methods using timber supports or waste filling, shrinkage stoping, and caving methods like top slicing and block caving.
Challenges, Risks & Opportunities For the Mining Industry in the Americas Tim Alch
While optimistic about the longer term outlook, 2013 has been tough for investors and managers. Rising costs, lower prices, slower growth in China, etc. and non-technical risks such as changing government regulations, social license and NIMBY have hurt returns, investment and interest.
Geotechnical and Business Issues and Risks when Evaluating Mineral Prospects Tim Alch
This presentation given at a Baker & McKenzie Seminar in Toronto highlights the variable, multiple issues and risks impacting the global exploration and mining business today
Macquarie Gold, Managing Director, Dr Ted AmblerSymposium
Macquarie Gold Limited is seeking to list on the ASX to fund development of the Adelong Gold Field in New South Wales. The project includes a 120,000 ounce JORC-compliant resource that is ready for open cut mining, as well as exploration licenses covering the historic field that produced over 21 tonnes of gold. Funds from the proposed $12.5 million IPO will be used to construct a processing plant and mine the known resource, with plans to produce an average of 15,000 ounces of gold per year. Drilling will also aim to expand resources across the field and increase the total to over 1 million ounces.
Millrock has identified six drill target areas at its Liberty Bell gold project in Alaska. The highest priority target, the Airstrip Target, is ready to be drilled. Millrock's Goodpaster gold project is located in a prolific gold district of Alaska that contains the high-grade Pogo gold mine. Millrock has staked a large land position covering multiple trends of gold occurrences near the Pogo mine, presenting opportunities to discover new deposits similar to Pogo.
Millrock has staked a large land position in Alaska's Goodpaster Gold District, located within the prolific Tintina Gold Province. The district is home to Northern Star's high-grade underground Pogo Gold Mine, which has produced over 4 million ounces of gold to date. Millrock's claims surround and extend mineralized trends known to host gold occurrences and prospects, yet have seen relatively little modern exploration. Millrock believes there is strong potential to discover additional high-grade gold deposits within the district similar to Pogo.
Millrock Resources Inc. is a premier project generator to the mining industry. Millrock identifies, packages, and operates large-scale projects for joint venture, thereby exposing its shareholders to the benefits of mineral discovery without the usual financial risk taken on by most exploration companies. The company is active in Alaska, the southwest USA, and Sonora State, Mexico. Funding for drilling at Millrock’s exploration projects is primarily provided by its joint venture partners. Business partners of Millrock have included some of the leading names in the mining industry: EMX Royalty, Centerra Gold, First Quantum, Teck, Kinross, Vale, Inmet, Altius, and Riverside. Millrock is a major shareholder of junior explorer ArcWest Exploration Inc. and holds a portfolio of exploration project royalty interests.
Pershing Gold Corporation is an emerging gold producer focused on reopening the Relief Canyon Mine in Nevada. Drilling programs have expanded known mineralization at Relief Canyon and discovered new mineralization styles. The company controls permits and infrastructure to begin gold production in 2014 at an initial rate of 50,000 ounces annually. Recent exploration also identified new exploration targets through geophysical surveys.
Millrock Resources Inc. is a premier project generator to the mining industry. In the search for world-class metallic mineral deposits in mineral-rich Alaska, southwest USA, and Mexico, Millrock identifies, packages and operates large-scale projects for joint venture, thereby exposing its shareholders to the benefits of mineral discovery without the usual financial risk taken on by most exploration companies. Millrock currently has twenty-two active exploration projects, eight gold-copper and zinc properties in Alaska, a porphyry copper prospect in Arizona, a uranium project in New Mexico, and twelve gold, silver and copper projects in Mexico. Funding for Millrock’s exploration projects primarily comes from its joint venture partners. Business partners of Millrock have included some of the leading names in the mining industry: First Quantum, Teck, Kinross, Vale, Inmet and Altius.
Richfield Oil and Gas Company is a publicly-traded North American oil and gas exploration and production company. It has a unique portfolio of assets including low-risk, low-cost producing fields in Kansas that generate immediate cash flow as well as exploration prospects with significant long-term upside potential in Utah, Wyoming, and Kansas. The company is led by an experienced management team with a proven track record of identifying and developing undervalued oil and gas assets.
Richfield Oil and Gas Company is a publicly-traded North American oil and gas exploration and production company. It has a unique portfolio of assets including low-risk, low-cost producing fields in Kansas that generate immediate cash flow as well as exploration prospects with significant long-term upside potential in Utah, Wyoming, and Kansas. The company is led by an experienced management team with a proven track record of identifying and developing undercapitalized oil and gas assets.
U.S. Silver & Gold - Investor Presentation - August 2013ussilver
This document provides an overview of U.S. Silver & Gold Inc., a junior silver mining company. Key points include:
- U.S. Silver & Gold operates the high-grade Galena silver mine in Idaho and has over 23 million ounces of silver in reserves.
- The company is assessing the potential of the Caladay Zone, a new discovery that could support lower cost bulk mining.
- Management aims to grow production to over 5 million ounces of silver by 2015 through brownfield expansions and acquisitions.
- The company trades at a discount to its peers on metrics like enterprise value per ounce of silver resources.
www.sagegoldinc.com
Sage Gold plans to generate cash from production of the existing resources on Clavos and Lynx through project financing, joint venture or sale.
CLAVOS PROJECT- HIGHLIGHTS
*Permits in place to mine the Clavos gold deposit
-Located in prolific Timmins Mining camp (>100 million ozs gold)
Existing infrastructure - underground ramp and levels every 25m to the 300m level
-NI43-101 Resource Study and PEA completed
-Low initial Capex required for potential production … $8.0 million
-Joint venture; Sage 60%, St Andrew Goldfields 40%
Clavos is located in close proximity to several operating mills
Natural Gas pipeline on Clavos Property – Potential Fuel and Power savings
-Exploration Potential – deep (400-600m);
2 deep holes: 65.3g/t over 4.2m & 17.4g/t over 1.5m
This document provides an investor presentation for Richfield Oil and Gas Company (ROIL). It highlights ROIL's low-risk oil and gas assets in Kansas and Wyoming that provide immediate cash flow, as well as higher-risk/higher-reward assets in Utah that provide long-term upside potential. ROIL has over 1,600 barrels of oil equivalent in proved reserves and a proved PV-10 of $33.9 million based only on developed properties. It plans to increase production and cash flow through reworking and new drilling in its core areas. Significant unbooked potential exists in its Utah acreage in reservoirs like the Mancos Shale and Navajo Sandstone.
U.S. Silver & Gold Corporate Presentation - August 28, 2013ussilver
- U.S. Silver & Gold owns the Galena Complex in Idaho which has historically produced over 240 million ounces of silver and currently contains over 23 million ounces of proven and probable silver reserves.
- The company is focusing on exploring and developing the high-grade Caladay Zone to increase silver production and extend the mine life at its Galena Mine.
- Production in 2013 is forecasted to be between 2.1-2.2 million ounces of silver at a cash cost of $15.50-$17.50 per ounce of silver.
Millrock Resources - Investor's Presentation - Fall 2019Millrock Resources
Millrock Resources Inc. is a premier project generator to the mining industry. Millrock identifies, packages, and operates large-scale projects for joint venture, thereby exposing its shareholders to the benefits of mineral discovery without the usual financial risk taken on by most exploration companies. The company is recognized as the premier generative explorer in Alaska, holds royalty interests in British Columbia, Canada and Sonora State, Mexico and is a significant shareholder of junior explorer ArcWest Exploration Inc. Funding for drilling at Millrock’s exploration projects is primarily provided by its joint venture partners. Business partners of Millrock have included some of the leading names in the mining industry: EMX Royalty, Centerra Gold, First Quantum, Teck, Kinross, Vale, Inmet, Altius, Riverside and PolarX.
Millrock Resources Inc. is a premier project generator to the mining industry. Millrock identifies, packages, and operates large-scale projects for joint venture, thereby exposing its shareholders to the benefits of mineral discovery without the usual financial risk taken on by most exploration companies. The company is recognized as the premier generative explorer in Alaska, holds royalty interests in British Columbia, Canada and Sonora State, Mexico and is a significant shareholder of junior explorer ArcWest Exploration Inc. Funding for drilling at Millrock’s exploration projects is primarily provided by its joint venture partners. Business partners of Millrock have included some of the leading names in the mining industry: EMX Royalty, Centerra Gold, First Quantum, Teck, Kinross, Vale, Inmet, Altius, Riverside and PolarX.
U.S. Silver and Gold Corporate Presentation - Novemberr 2012ussilver
U.S. Silver & Gold is a new company focused on growth through its existing mining assets and acquisitions. It has two operating silver mines in Idaho, the Galena Mine Complex and Drumlummon Mine, which have historically produced over 240 million ounces of silver and 1 million ounces of gold. The Galena Mine Complex is the second largest primary silver mine in the U.S. and recently produced over 1 million ounces of silver in the first half of 2012. U.S. Silver & Gold plans to ramp up production at the Coeur area of the Galena Mine Complex to 500,000 ounces of silver per year by 2013. The company aims to produce over 5 million ounces of silver total by 2014 through its
U.S. Silver and Gold Corporate Presentation - November 2012ussilver
U.S. Silver & Gold operates two silver mines in Idaho with over 35 million ounces of silver reserves and resources, and plans to increase annual silver production to over 5 million ounces by 2014 through brownfield expansions and exploration. The company has an experienced management team with a track record of success in mining and aims to grow through acquisitions of additional assets in North America. Trading at a lower valuation than peer mid-tier silver producers, U.S. Silver & Gold believes it has re-rating potential as production increases and visibility within the investment community grows.
- Klondex is a gold mining company focused on developing its high-grade Fire Creek gold project located in Nevada.
- Klondex has signed an agreement to acquire Newmont's nearby Midas Mine and Mill, adding an operating mine and mill to process ore from Fire Creek.
- The acquisition of Midas is expected to be transformational for Klondex by providing a long-term milling solution and the potential to generate near-term revenues and cash flows from mining at both Fire Creek and Midas.
The document discusses Aben Resources Ltd., a mineral exploration company with gold projects in British Columbia, Saskatchewan, and Yukon. It provides an overview of Aben's key assets and management team, as well as summaries of each project, including geological features, past work, and plans for future exploration work including geophysics, drilling, and permitting. The company aims to advance its projects and increase their resource potential through continued exploration.
This document provides an overview of a mining investment and advisory firm. It has a global network of over 200 mining professionals with expertise in engineering, geology, law, finance, and administration. The firm focuses on strengthening mining companies and increasing their value. It has had success discovering resources, building mines, and significantly increasing the market value of its client companies over the past 10 years. The document outlines some of the firm's past case studies and achievements in gold, iron ore, coal, and other commodities to demonstrate its track record and value-adding approach.
Learn about our current focus: The Tomichi copper-molybdenum porphyry project in Gunnison County, south-central Colorado. The Project is located along the southeastern edge of the Colorado Mineral Belt, host to some of the world's largest moly deposits such as Henderson, Climax and Mt. Emmons.
U.S. Silver and Gold Corporate Presentation - November 2 2012ussilver
U.S. Silver & Gold is a new company built for growth. It has established, long-life operating assets that produce silver and gold, including the Galena Mine Complex and Drumlummon Mine. The company has a strong operating cash flow and significant ongoing brownfield expansion opportunities. Management aims to exceed annual silver production of 5 million ounces by 2014 through brownfield expansions, exploring synergies between assets, and pursuing accretive acquisitions in North America.
U.S. Silver and Gold Corporate Presentation - November 2 2012ussilver
U.S. Silver & Gold is a new company built for growth. It has established, long-life operating assets that produce silver and gold, including the Galena Mine Complex and Drumlummon Mine. The company has a strong operating cash flow and significant ongoing brownfield expansion opportunities. Management aims to exceed annual silver production of 5 million ounces by 2014 through brownfield expansions, exploring synergies between assets, and pursuing accretive acquisitions in North America.
U.S. Silver and Gold Corporate Presentation - November 2 2012ussilver
U.S. Silver & Gold is a new company built for growth. It has established, long-life operating assets that produce silver and gold, including the Galena Mine Complex and Drumlummon Mine. The company has a strong operating cash flow and significant ongoing brownfield expansion opportunities. Management aims to exceed annual silver production of 5 million ounces by 2014 through brownfield expansions, exploring synergies between assets, and pursuing accretive acquisitions in North America.
CTMF 2017 Registration Form and InvitationTim Alch
Join us in the heart of NYC's financial district at SME's 5th Current Trends in Mining Finance Conference April 30 to May 3 where senior executives and mining industry specialists, bankers, financiers, analysts, investors, portfolio managers, and engineers meet at CTMF events to discuss key issues trends and a range of topics, solutions, risks and where opportunities are in the global mining industry.
3rd Annual Current Trends in Mining Finance Conference Program 26 29 April 2015 Tim Alch
The 3rd Current Trends in Mining Finance Conference is for senior executives and mining industry specialists including bankers, analysts and investors. The conference and two workshops: on Sunday (about Managing Metal Risk Exposure - Hedging Strategies and Related Accounting Issues -) and on Wednesday (about Integrated Valuation and Risk Modelling Methods) will cover a range of important topics, including:
Trends in project evaluation and investment decision-making; Types of financings done; Drivers of future industry mergers and acquisitions; Tax and accounting issues facing the mining industry; Risk factors in the current market environment; New sources of capital for mining projects; Smarter use of data and technology to reduce operating and capital cost and manage risk; Impact of “soft” issues on mine development and finance.
More Related Content
Similar to Importance of Independent Due Diligence in Mining IPMI Conference Presentation June 2013
Millrock Resources Inc. is a premier project generator to the mining industry. Millrock identifies, packages, and operates large-scale projects for joint venture, thereby exposing its shareholders to the benefits of mineral discovery without the usual financial risk taken on by most exploration companies. The company is active in Alaska, the southwest USA, and Sonora State, Mexico. Funding for drilling at Millrock’s exploration projects is primarily provided by its joint venture partners. Business partners of Millrock have included some of the leading names in the mining industry: EMX Royalty, Centerra Gold, First Quantum, Teck, Kinross, Vale, Inmet, Altius, and Riverside. Millrock is a major shareholder of junior explorer ArcWest Exploration Inc. and holds a portfolio of exploration project royalty interests.
Pershing Gold Corporation is an emerging gold producer focused on reopening the Relief Canyon Mine in Nevada. Drilling programs have expanded known mineralization at Relief Canyon and discovered new mineralization styles. The company controls permits and infrastructure to begin gold production in 2014 at an initial rate of 50,000 ounces annually. Recent exploration also identified new exploration targets through geophysical surveys.
Millrock Resources Inc. is a premier project generator to the mining industry. In the search for world-class metallic mineral deposits in mineral-rich Alaska, southwest USA, and Mexico, Millrock identifies, packages and operates large-scale projects for joint venture, thereby exposing its shareholders to the benefits of mineral discovery without the usual financial risk taken on by most exploration companies. Millrock currently has twenty-two active exploration projects, eight gold-copper and zinc properties in Alaska, a porphyry copper prospect in Arizona, a uranium project in New Mexico, and twelve gold, silver and copper projects in Mexico. Funding for Millrock’s exploration projects primarily comes from its joint venture partners. Business partners of Millrock have included some of the leading names in the mining industry: First Quantum, Teck, Kinross, Vale, Inmet and Altius.
Richfield Oil and Gas Company is a publicly-traded North American oil and gas exploration and production company. It has a unique portfolio of assets including low-risk, low-cost producing fields in Kansas that generate immediate cash flow as well as exploration prospects with significant long-term upside potential in Utah, Wyoming, and Kansas. The company is led by an experienced management team with a proven track record of identifying and developing undervalued oil and gas assets.
Richfield Oil and Gas Company is a publicly-traded North American oil and gas exploration and production company. It has a unique portfolio of assets including low-risk, low-cost producing fields in Kansas that generate immediate cash flow as well as exploration prospects with significant long-term upside potential in Utah, Wyoming, and Kansas. The company is led by an experienced management team with a proven track record of identifying and developing undercapitalized oil and gas assets.
U.S. Silver & Gold - Investor Presentation - August 2013ussilver
This document provides an overview of U.S. Silver & Gold Inc., a junior silver mining company. Key points include:
- U.S. Silver & Gold operates the high-grade Galena silver mine in Idaho and has over 23 million ounces of silver in reserves.
- The company is assessing the potential of the Caladay Zone, a new discovery that could support lower cost bulk mining.
- Management aims to grow production to over 5 million ounces of silver by 2015 through brownfield expansions and acquisitions.
- The company trades at a discount to its peers on metrics like enterprise value per ounce of silver resources.
www.sagegoldinc.com
Sage Gold plans to generate cash from production of the existing resources on Clavos and Lynx through project financing, joint venture or sale.
CLAVOS PROJECT- HIGHLIGHTS
*Permits in place to mine the Clavos gold deposit
-Located in prolific Timmins Mining camp (>100 million ozs gold)
Existing infrastructure - underground ramp and levels every 25m to the 300m level
-NI43-101 Resource Study and PEA completed
-Low initial Capex required for potential production … $8.0 million
-Joint venture; Sage 60%, St Andrew Goldfields 40%
Clavos is located in close proximity to several operating mills
Natural Gas pipeline on Clavos Property – Potential Fuel and Power savings
-Exploration Potential – deep (400-600m);
2 deep holes: 65.3g/t over 4.2m & 17.4g/t over 1.5m
This document provides an investor presentation for Richfield Oil and Gas Company (ROIL). It highlights ROIL's low-risk oil and gas assets in Kansas and Wyoming that provide immediate cash flow, as well as higher-risk/higher-reward assets in Utah that provide long-term upside potential. ROIL has over 1,600 barrels of oil equivalent in proved reserves and a proved PV-10 of $33.9 million based only on developed properties. It plans to increase production and cash flow through reworking and new drilling in its core areas. Significant unbooked potential exists in its Utah acreage in reservoirs like the Mancos Shale and Navajo Sandstone.
U.S. Silver & Gold Corporate Presentation - August 28, 2013ussilver
- U.S. Silver & Gold owns the Galena Complex in Idaho which has historically produced over 240 million ounces of silver and currently contains over 23 million ounces of proven and probable silver reserves.
- The company is focusing on exploring and developing the high-grade Caladay Zone to increase silver production and extend the mine life at its Galena Mine.
- Production in 2013 is forecasted to be between 2.1-2.2 million ounces of silver at a cash cost of $15.50-$17.50 per ounce of silver.
Millrock Resources - Investor's Presentation - Fall 2019Millrock Resources
Millrock Resources Inc. is a premier project generator to the mining industry. Millrock identifies, packages, and operates large-scale projects for joint venture, thereby exposing its shareholders to the benefits of mineral discovery without the usual financial risk taken on by most exploration companies. The company is recognized as the premier generative explorer in Alaska, holds royalty interests in British Columbia, Canada and Sonora State, Mexico and is a significant shareholder of junior explorer ArcWest Exploration Inc. Funding for drilling at Millrock’s exploration projects is primarily provided by its joint venture partners. Business partners of Millrock have included some of the leading names in the mining industry: EMX Royalty, Centerra Gold, First Quantum, Teck, Kinross, Vale, Inmet, Altius, Riverside and PolarX.
Millrock Resources Inc. is a premier project generator to the mining industry. Millrock identifies, packages, and operates large-scale projects for joint venture, thereby exposing its shareholders to the benefits of mineral discovery without the usual financial risk taken on by most exploration companies. The company is recognized as the premier generative explorer in Alaska, holds royalty interests in British Columbia, Canada and Sonora State, Mexico and is a significant shareholder of junior explorer ArcWest Exploration Inc. Funding for drilling at Millrock’s exploration projects is primarily provided by its joint venture partners. Business partners of Millrock have included some of the leading names in the mining industry: EMX Royalty, Centerra Gold, First Quantum, Teck, Kinross, Vale, Inmet, Altius, Riverside and PolarX.
U.S. Silver and Gold Corporate Presentation - Novemberr 2012ussilver
U.S. Silver & Gold is a new company focused on growth through its existing mining assets and acquisitions. It has two operating silver mines in Idaho, the Galena Mine Complex and Drumlummon Mine, which have historically produced over 240 million ounces of silver and 1 million ounces of gold. The Galena Mine Complex is the second largest primary silver mine in the U.S. and recently produced over 1 million ounces of silver in the first half of 2012. U.S. Silver & Gold plans to ramp up production at the Coeur area of the Galena Mine Complex to 500,000 ounces of silver per year by 2013. The company aims to produce over 5 million ounces of silver total by 2014 through its
U.S. Silver and Gold Corporate Presentation - November 2012ussilver
U.S. Silver & Gold operates two silver mines in Idaho with over 35 million ounces of silver reserves and resources, and plans to increase annual silver production to over 5 million ounces by 2014 through brownfield expansions and exploration. The company has an experienced management team with a track record of success in mining and aims to grow through acquisitions of additional assets in North America. Trading at a lower valuation than peer mid-tier silver producers, U.S. Silver & Gold believes it has re-rating potential as production increases and visibility within the investment community grows.
- Klondex is a gold mining company focused on developing its high-grade Fire Creek gold project located in Nevada.
- Klondex has signed an agreement to acquire Newmont's nearby Midas Mine and Mill, adding an operating mine and mill to process ore from Fire Creek.
- The acquisition of Midas is expected to be transformational for Klondex by providing a long-term milling solution and the potential to generate near-term revenues and cash flows from mining at both Fire Creek and Midas.
The document discusses Aben Resources Ltd., a mineral exploration company with gold projects in British Columbia, Saskatchewan, and Yukon. It provides an overview of Aben's key assets and management team, as well as summaries of each project, including geological features, past work, and plans for future exploration work including geophysics, drilling, and permitting. The company aims to advance its projects and increase their resource potential through continued exploration.
This document provides an overview of a mining investment and advisory firm. It has a global network of over 200 mining professionals with expertise in engineering, geology, law, finance, and administration. The firm focuses on strengthening mining companies and increasing their value. It has had success discovering resources, building mines, and significantly increasing the market value of its client companies over the past 10 years. The document outlines some of the firm's past case studies and achievements in gold, iron ore, coal, and other commodities to demonstrate its track record and value-adding approach.
Learn about our current focus: The Tomichi copper-molybdenum porphyry project in Gunnison County, south-central Colorado. The Project is located along the southeastern edge of the Colorado Mineral Belt, host to some of the world's largest moly deposits such as Henderson, Climax and Mt. Emmons.
U.S. Silver and Gold Corporate Presentation - November 2 2012ussilver
U.S. Silver & Gold is a new company built for growth. It has established, long-life operating assets that produce silver and gold, including the Galena Mine Complex and Drumlummon Mine. The company has a strong operating cash flow and significant ongoing brownfield expansion opportunities. Management aims to exceed annual silver production of 5 million ounces by 2014 through brownfield expansions, exploring synergies between assets, and pursuing accretive acquisitions in North America.
U.S. Silver and Gold Corporate Presentation - November 2 2012ussilver
U.S. Silver & Gold is a new company built for growth. It has established, long-life operating assets that produce silver and gold, including the Galena Mine Complex and Drumlummon Mine. The company has a strong operating cash flow and significant ongoing brownfield expansion opportunities. Management aims to exceed annual silver production of 5 million ounces by 2014 through brownfield expansions, exploring synergies between assets, and pursuing accretive acquisitions in North America.
U.S. Silver and Gold Corporate Presentation - November 2 2012ussilver
U.S. Silver & Gold is a new company built for growth. It has established, long-life operating assets that produce silver and gold, including the Galena Mine Complex and Drumlummon Mine. The company has a strong operating cash flow and significant ongoing brownfield expansion opportunities. Management aims to exceed annual silver production of 5 million ounces by 2014 through brownfield expansions, exploring synergies between assets, and pursuing accretive acquisitions in North America.
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CTMF 2017 Registration Form and InvitationTim Alch
Join us in the heart of NYC's financial district at SME's 5th Current Trends in Mining Finance Conference April 30 to May 3 where senior executives and mining industry specialists, bankers, financiers, analysts, investors, portfolio managers, and engineers meet at CTMF events to discuss key issues trends and a range of topics, solutions, risks and where opportunities are in the global mining industry.
3rd Annual Current Trends in Mining Finance Conference Program 26 29 April 2015 Tim Alch
The 3rd Current Trends in Mining Finance Conference is for senior executives and mining industry specialists including bankers, analysts and investors. The conference and two workshops: on Sunday (about Managing Metal Risk Exposure - Hedging Strategies and Related Accounting Issues -) and on Wednesday (about Integrated Valuation and Risk Modelling Methods) will cover a range of important topics, including:
Trends in project evaluation and investment decision-making; Types of financings done; Drivers of future industry mergers and acquisitions; Tax and accounting issues facing the mining industry; Risk factors in the current market environment; New sources of capital for mining projects; Smarter use of data and technology to reduce operating and capital cost and manage risk; Impact of “soft” issues on mine development and finance.
4th Current Trends in Mining Finance Conference Program 24 27 April 2016 NYCTim Alch
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Exploration and Mining Trends in the Digital Age: Global Outlook and Issues i...Tim Alch
At CESCO Week in Santiago, Chile I spoke about the world’s need to explore for and mine copper and the importance of knowing early-on how to operate locally to manage risks. While optimistic, over the life of mining any resource, there are many variables and issues owners need to be mindful of including managing many different and often changing expectations. In the case of copper, it is core to the world being connected on smartphones, Facebook, internet, etc., Without copper, it is fair to say we cannot be connected as we all are and expect to be. While copper does have unique properties and the business differs from other commodities, other minerals share similar outlooks as more of the world’s ~7.2 billion people near term are projected to live in urban areas, enjoy higher standards of living and consume more materials.
SME Current Trends in Mining Finance Program April 29, 30, 2013 in New YorkTim Alch
This document provides the agenda for a two-day conference on "Current Trends in Mining Finance: An Operator's Guide" to be held on April 29-30, 2013 at the City University of New York Graduate Center. The conference will cover topics related to project evaluation, investment decision making, mergers and acquisitions, tax and accounting issues, risk factors, new sources of funding, development agreements, and how "soft" issues impact mine development and finance. Speakers will represent organizations such as Citibank, SNL Metals Economics Group, CRU, Nomura, Caterpillar Mining Finance, Cowen Securities, and Societe Generale. Presentations will provide outlooks on base metals, industrial
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SME's Current Trends in Mining Finance Conference on 29, 30 April in New York...Tim Alch
If you are interested in raising capital in the global mining, minerals processing, coal, energy sectors you may want to consider attending the SME's Current Trends in Mining Finance conference on 29, 30 April in New York .
Sme current trends in mining finance april 29, 30 2013 in nyc preliminary age...Tim Alch
This document provides information about a two-day conference on current trends in mining finance being held on April 29-30, 2013 at the City University of New York Graduate Center in New York City. The conference will cover topics such as project evaluation, drivers of mergers and acquisitions, tax and accounting issues, risk factors, sources of funding, mineral development agreements, and how social issues impact mine development and finance. There will be sessions on the first day covering an overview of capital markets over the past ten years, outlooks for base and industrial metals, bankers' views on raising capital, regulatory compliance issues, strategic challenges for mining companies, governance standards, and alternative capital sources. The second day will include sessions on precious metals prices
Sme current trends in mining finance april 29, 30 2013 in nyc preliminary age...Tim Alch
The document provides information about a two-day conference on "Current Trends in Mining Finance" being held on April 29-30, 2013 in New York City. The conference will cover topics related to project evaluation, mergers and acquisitions, tax issues, risk factors, funding sources, mineral agreements, and how "soft" issues impact mining development and finance. It includes the schedule, list of speakers and organizers, and provides details about registration.
The Ma'aden Phosphate Company's (MPC) phosphate project in Saudi Arabia is one of the largest integrated phosphate fertilizer producers worldwide, costing $5.5 billion to develop. Behre Dolbear has served as the Technical Advisor since 2006 to a consortium of banks that financed the project, conducting analysis and monitoring construction progress, capital budget, and production tests. Behre Dolbear will continue monitoring throughout the 14-year loan term. The project includes a mine, processing plant, railway, port, and chemical complex producing diammonium phosphate fertilizer, with over 2,000 employees and annual exports of 2.9 million tons of fertilizer.
Steel Change may be ahead by Tim Alch May 16 2008 Tim Alch
Global steel production grew by 7.5% in 2007, led by a 15.7% increase in China. While US steel production declined by 1.4% due to weaker markets, production increased in Europe, Brazil, India and Russia. The BRIC nations (Brazil, Russia, India, China) have transformed the global steel industry, increasing their share of world production from 31% in 2001 to 48.2% in 2007 due to strong growth, particularly in China. However, concerns about the global economic outlook and high raw material costs create uncertainty for the steel industry in 2008.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
Understanding how timely GST payments influence a lender's decision to approve loans, this topic explores the correlation between GST compliance and creditworthiness. It highlights how consistent GST payments can enhance a business's financial credibility, potentially leading to higher chances of loan approval.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Importance of Independent Due Diligence in Mining IPMI Conference Presentation June 2013
1. International Precious Metals Institute
Annual Meeting – 25 June 2013 – Phoenix
The Importance of Independent,
Qualified, Technical Due Diligence in
Mining for Investors, Owners, & Managers
Tim Alch
V.P & Senior Minerals Business Analyst
Behre Dolbear & Company (USA), Inc.
+1.845.480.1434
2. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Overview - What to Look For When
Evaluating Mining Projects
• Recent and current trends
• All resources are not golden
• Issues to examine and consider
• Prepare for the best and worst
3. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
$PerTonneNickel
$PerTonne(Copper,Lead,Zinc,Aluminum)
Nominal Industrial Metal Average Prices
1970 – 2012
Aluminum Copper Lead Zinc Nickel
Recent Years Have Been Good, Relative to
Price Cycles of the Past 40 Years
Data Source: USGS and LME
Capital
Destruction
Capital
Creation
Capital
Destruction
?
4. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Metals Demand Has Grown,
Sentiment Now Is Cautious
• Urbanization, industrialization continues in
China, SE Asia, India, parts of LatAm, MENA
driving industrial metals and energy demand
• Security & stability of supply are a concern in
China, Korea, Japan, Middle East, etc. and
select co.s e.g., fuel (coal, uranium), fertilizer
minerals, technology/critical metals, etc.
• Economic growth in China, EU, etc. is slower
• Metals prices and valuations are down
• Risk-off attitude is plaguing sector
6. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Largest Mass Migration in History Sets
Theme for World‟s Rising Middle Class
• In the next 20 years, ~325 million people to move to urban areas in China
• China‟s middle class may to double to 600+ million by 2020
• A similar shift is occurring elsewhere around the world
7. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
China Consumes About Half the
World‟s Metals, Energy, etc.
Source: UBS
8. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
China‟s Share of Global Metals
Consumption May Level Off
Source: The Economist and UBS
9. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Cautious Now; Long Term Demand Positive
• Mining companies have reduced spending
• Investors and lenders are very cautious
• Cash is king, may be primed for M&A
• Many „Juniors‟ are short of capital
• Tough markets may go into 2014
• Longer term - supply may struggle to meet demand
• Sporadic price spikes in metals markets can occur
• Constraining new supply are: Declining ore grades;
Higher costs; Fewer large deposits; Larger „takes‟
by Governments; Changing political winds; etc.
10. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Gold <$1,300/oz Is Well Below Recent Highs,
Narrowing Margins - How Low Can It Go?
Source: BMO Research
11. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Since Sept 2011 Metals Equities Fell
Disappointed Investors Flock to S&P
Source: Cowen Securities
-
50%
100%
150%
Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13
GDXJ Coal Index Copper Index S&P 500
Source: Capital IQ. Data as of April 26, 2013.
Note: Coal Index represents Dow Jones U.S. Coal Index. Copper Index based on Cowen Securities Investment Banking coverage database.
12. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Cautious, Deliberate, Long Term View
Is Core to Cyclical Mining Business
• You can lose a fortune being optimistic about
the near term future – some have already
• As a legendary analyst said “Be careful
about looking to mountain tops as paths
through valley floors can be treacherous”
• Behre Dolbear focuses on geo-technical,
operating, business & financial issues that
impact exploration, development, operations
• We do not forecast metals prices
13. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
When To Call Independent Experts
• It is best to get Qualified expert advice early on
whether you are an owner, investor, etc.
• All too often experts are called when:
The company is out of money
Lenders are out of patience
Despair has set in
• Caveat Emptor – Buyer Beware
• Profitable projects are few
15. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Finding A Gold Mine Is Costly and Risky
It All Starts With Exploration
16. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Exploration Is Core to Mining
What To Look For
Mining companies and management feel obliged
to find and develop new competitive, low cost
resources, i.e., their Life Blood – to replace
existing reserves – that are diminishing assets –
and to Stay Competitive
MANAGEMENT & INVESTORS BEWARE!
Once a Fido = Dog, Always a Phydeaux
= A Higher Class Dog is Still A Dog!
17. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Why Trained, Qualified Eyes Are Needed
• Best properties are low cost, in stable jurisdictions
& likely expansions/extensions of existing mines
• Top rate management always essential
• Understanding terms and markets critical
• „Resources‟ are concentrations or occurrences of
minerals in such form and quantity and of such
grade or quality that they have reasonable
prospects for economic extraction
• Terms, definitions, methods used to evaluate a
property can vary by user & jurisdiction BEWARE
18. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
In the Best Case: Accepted Resource-Reserve
Classification Systems are Used
Australia JORC Code
Canada CIM 2000 / NI 43-101
Europe PERC
South Africa SAMREC Code
United States SME / SEC Industry Guide 7
Russia A, B, C, D, E
China Traditional and New (1999)
19. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
In the Worst Case: Beware of Fraud
• If it sounds too good, it likely is
• Look for misleading statements
• Know who you are dealing with, etc.
• Evaluate circumstances relative to history
• There is no good substitute for an Independent,
Qualified Expert review – too many variables
and too long a period of time are involved
• Being diligent using Rules of Thumb, Common
Sense, etc. are not good enough
20. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Economic Worthiness of a Property
Is Impacted By Many, Many Variables
Study these and many other items with discerning, trained eye:
• Property Information and Stable Regulatory Environment
• Geology and Resources
• Mining
• Mineral Processing and Metallurgy
• Infrastructure
• Products, Markets and Sales
• Environmental and Permitting
• Financial Issues
• Development Costs and Schedule
• Political and Social Considerations
• Market
• Project Economics – Opex and Capex
22. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Three Levels of Engineering Studies
Used to Define Economic Worthiness
Conceptual Study/Scoping Study
Pre-feasibility Study
Feasibility Study
23. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Engineering Studies – Scoping Study
• aka Conceptual Study, Preliminary Economic Analysis
• First engineering study to compile all elements of a
project into one evaluation and apply economic tests
• Its accuracy is based on first
principles, knowledge, and experience and is
generally +50% / -25%
• This is the least expensive engineering study and is
usually completed in 90 days or less
24. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Engineering Studies – Pre Feasibility Study
• aka PFS or Pre-Feasibility Study
• Accurate to +25% / -15%
• May take 6 to 18 months to complete
• Engineering evaluation applied to key elements, such as
• The caliber of the resource estimate
• The mine design
• The process design
• Mineralogical analysis
• Metallurgical testing
• Soil and rock engineering tests
• Smelting/refining and marketing
• Environmental work – the EIA is completed during the PFS
• Cash flow analysis, sensitivity analyses, and economic tests
25. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Engineering Studies – Feasibility Study
• Feasibility Study or Definitive Study
• The document upon which mine is approved by the
Board of the mining company developing the mine
• If financing is required, this is the document evaluated
by financial institutions in their decision-making process
• The Feasibility Study is also the document to which the
completed and commissioned mine plan is compared to
determine its commercial status
26. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Definition – Feasibility Study
“A comprehensive study of a mineral deposit in which
all geological, engineering, legal, operating,
economic, social, environmental and other relevant
factors are considered in sufficient detail that it
could reasonably serve as the basis for a final
decision by a financial institution to finance the
development of the deposit for mineral production.”
- Canadian National Instrument 43-101
44. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
1. Social Issues/Social License to Operate
• Social, Economic, Regulatory issues are a
leading cause of project delay & cost increases
• Striving to be compliant with regulations and
NGO agitation, etc. are contributing to higher
project costs and delays
• Gaining confidence for Social License to
operate is essential
45. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
2. Costs Control Needed
• Capex rising through cycle
• Capex lags rise in metal prices
• Number of blow ups increasing
• Long investment horizons
• Project development
• Reserve expansion
Per Unit of Annual Production (US$)
Gold $1,250 to $2,500 per oz of annual production
Copper $3.50 to $4.50 per lb of annual production
Capital Costs
46. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Building Mines – Capital Costs
• Capital costs are primarily dependent on
Location, political situation, skilled labor availability
Depth of ore zone and mining horizons
Shaft or adit/ramp access
Plant size
− Shaft size and hoisting capacity
− Equipment fleet size and material handling capacity
− Processing plant capacity to match mining rate
Mining method
− Level of mechanization and automation
− Productivity per man shift
47. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Different Geology; Different Economics
• Of the world‟s gold production the bulk is from
sulphide ore rather than oxide ore
• The project, operating economics are different
• Representative indicative measures:
Sulphide Ore: Capex low grade $300 to
$700+ million; minimum 2 to 5m oz
Oxide Ore: Capex is scalable with Opex =1/5
of Sulphide; minimum scale can be small
48. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
What Can Go Wrong: Issues To Look For
Mine Operating Cost Estimation
• Fuel and electricity costs under estimated
• VAT/sales tax, not included and import duties neglected
• Improper cycle times & haulage distances used
• Mining sequence and methods
• Ground control under estimated
• Inadequate pre-stripping
• Poor haul road design
• Pit slopes
• Dilution
• Poor waste dump design
• Etc.
49. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Recent Examples of Capital Costs Rising
Above Plan (US$ Billions)
Project Original Current
Pueblo Viejo 2.5 3.5
Galore Creek 2 5+
Cerro Casale 2 6
Pascua Lama 3 8+
50. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
3. Increased Government Take
• Changing measures and Government „takes‟ at
local, state, and federal levels are today‟s reality
• A global concern – Raises Project Uncertainty
• In normal mining cycles, a project will fail if
Government take exceeds 50%
• Mining companies take all the risk
51. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
4. Access to Capital
• Currently, equity and debt difficult to obtain
• New sources of funding need to be found
• Private Equity, State Owned Enterprises, etc.
may play a larger role
52. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Recent Capital Markets Trends
• Metals markets in 2012 & 1H13 are turbulent - at best
• A long term perspective is needed in mining business
• Banks, investors and operators are now risk adverse
• Management, stakeholders, employees, partners &
customers need to be realistic about options
• This uncertainty may continue well into 2014
• Alternative and strategic investors, private equity, SWFs
and SOEs may opportunistically step in
53. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
More Consolidation in Mining is Likely
• Valuations are less expensive than greenfield investment
• Consolidation to form Super and Larger Majors is likely
• SOEs, SWFs e.g. Japan, Korea, India likely to continue to
acquire strategic metals and energy fuel resources, etc.
• Strategic M&A may buoy mining assets and share prices
54. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Of the Top Ten Commodities by Global
Projects in 2011: Gold Was #1
• Investors, lenders, & speculators were attracted to precious metals
• What will 2013/4 look like?
Source: Intierra
55. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
In 2011 China M&A Focused on Gold
Source: Ernst and Young
56. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
In 2012 Global Gold M&A Was High Again
21.4
17.9
14.2
13.4
7.3
5.3
4.0 3.9 3.6
2.3
10.6
0
5
10
15
20
25
$Billions
2012 M&A Activity by Target Commodity
Source: Ernst and Young
57. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Recent China Acquisition Trend By Region –
USA & Canada = Small Share
By Value 1st Half 2012
58. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Prepare for the Best and Worst –
Check and Double Check
• Mining has a favorable long term outlook
• Have skilled, business savvy managers
• Always best to be in first cost quartile
• Understand and prepare for cycles
• Be aware of jurisdictional risks
• Always do due diligence
• Consider all unknowns
THANK YOU
59. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
The Behre Dolbear Group
• Behre Dolbear has 12 offices in 8 countries and completed 210+
jobs in 55+ countries in each of the last 5 years using our global
network of 125+ professionals in all major mining markets
• We perform studies and advise a wide range of entities in the
mining, banking, investment, financial, legal and accounting
sectors, and government agencies around the world
• Our evaluations span technical, operating, financial issues and
valuations of base, precious and ferrous
metals, coal, uranium, fertilizer & industrial
minerals, gemstones, construction materials
Tim Alch
V.P. & Senior Minerals Business Analyst
Behre Dolbear & Company (USA), Inc.
100 Park Avenue, New York City 10017
+1.845.480.1434 Tim.Alch@dolbear.com
61. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Appendix
Characteristics of 3 levels of engineering studies –
Not exhaustive, rather indicative checklists that
require trained, qualified experts‟ review:
Conceptual/Scoping Study
Pre-feasibility Study
Feasibility Study
62. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Characteristics of Scoping, Pre-Feasibility,
and Feasibility Studies – A1
Potential Areas of Investigation
for Proposed Mining Projects
PROPERTY INFORMATION
Location, topography and climate
Land ownership and royalties
Property history
Current status
GEOLOGY AND RESOURCES
Geological description
Mineralogy
Drilling, sampling and assaying
Evaluation techniques
Mineral resource estimate
MINING
Ore reserve estimate
Mining method and plans
Mining equipment
Material handing
Material handling equipment
Historical and forecast production
Consumables
Mining capital estimates
Mining operating cost estimates
PROCESSING
Ore sampling and testwork
Processing method
Other required processes
Process equipment
Historical and forecast production
Consumables
Processing capital estimates
Processing operating cost estimates
INFRASTRUCTURE
Industrial infrastructure facilities
Social infrastructure facilities
Utilities, power, water
Infrastructure capital estimates
Infrastructure operating cost estimates
MANAGEMENT AND LABOR
Management organization requirements
Labor requirements
PRODUCTS, MARKETS AND SALES
Products
Markets
Prices
Sales
ENVIRONMENTAL AND PERMITTING
Permit list
Environmental impact
Compliance costs
Compliance cost timing
Reclamation expenses
FINANCIAL ISSUES
Taxes
Royalties
Fees
Licenses
DEVELOPMENT COSTS AND SCHEDULE
Development cost estimate
Development schedule
Development methodology
POLITICAL & SOCIAL CONSIDERATIONS
Economic benefits and costs
Government considerations
Other issues
PROJECT ECONOMICS
Economic parameters
Discount rate determination
Cash flows
Investor returns
Debt analysis
Sensitivities
63. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Characteristics of Scoping, Pre-Feasibility,
and Feasibility Studies – A2
(continued)
CATEGORY
CONCEPTUAL
STUDY/SCOPING STUDY
PRE-FEASIBILITY STUDY FEASIBILITY STUDY
INTRODUCTION
Location, Topography, and Climate
Site location map
Ownership and Royalties
Claims list
Claims map
Current Status and History
Historical chronology
Information on past production, if any
•Yes
•No
No
No
No
•Yes
•No
Yes
No
No
•Yes
•Yes
Yes
Yes
Yes
GEOLOGY AND RESOURCES
Geological Description
Geological map
Geological cross-sections
Drilling, Sampling, and Assaying
Parameters
Drill hole location map
Sampling/assaying flow diagram and assessment
Assay check assessment and graph
Mineral Resource Estimate
Resource methodology determination and approach
Geologic model limits
Lithology/tonnage factors/code
Cumulative frequency of samples verses grade
Variograms
Resource Estimate
Yes
No
Yes
Yes
No
No
Yes
Yes
No
No
No
Industry Standards (NI 43-
101, JORC, etc.)
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Industry Standards (NI 43-
101, JORC, etc.)
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Industry Standards (NI 43-
101, JORC, etc.)
64. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Characteristics of Scoping, Pre-Feasibility,
and Feasibility Studies – A3
(continued)
CATEGORY
CONCEPTUAL
STUDY/SCOPING STUDY
PRE-FEASIBILITY
STUDY
FEASIBILITY STUDY
MINING
Ore Reserve Estimate
Reserve and resource calculation parameters
Cutoff grade equations
Reserve and resource estimate
Mining Method and Plans
Mining parameters
Hydrology/geotechnical parameters
Mining equipment list
Consumables list
Material handling systems
Material handling equipment
Personnel list
Surface mining
Final pit and dump outlines
Incremental pit and dump outlines
Underground mining
General mine development
Mining approach (stoping, cut and fill, etc.)
Production Schedule
Historical production, if any
Annual ore and waste tonnage and grade
Mining Capital and Operating Cost Estimates
Mining operating cost estimates
Mining capital cost estimates
Assumed Values
No
Industry Standards
Yes, minimal engineering basis
No
No
No
No
No
No
No
Yes, simple outline
No
Yes, general outline
Yes, general approach
Yes
Yes, division of total
Yes, factored 45%
Yes, factored 45%
Test-Based Values
Yes
Industry Standards
Yes, some geotechnical data
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes, 30%
Yes, from engineering
manuals 30%
Test-Based Values
Yes
Industry Standards
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes, 15%
Yes, from vendor quotes and
take-offs 15%
65. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Characteristics of Scoping, Pre-Feasibility,
and Feasibility Studies – A4
(continued)
CATEGORY
CONCEPTUAL
STUDY/SCOPING STUDY
PRE-FEASIBILITY STUDY FEASIBILITY STUDY
PROCESSING
Ore Sampling and Test Work
Test work data
Processing Methods and Plans
Processing methods
Processing parameters
Equipment list
Consumables list
Personnel list
Material balance
Flow diagram
Site plan
General arrangement drawings
Production Schedule
Historical production, if any
Annual production tonnage and grade
Off-site Processing Cost Estimates
Concentration charges
Smelting and refining charges
Other charges
Material handling and transport
Insurance and sales charges
Processing Capital and Operating Cost Estimates
Processing operating cost estimates
Processing capital cost estimates
No, assumed values
Yes, general approach
Yes, minimal engineering
No
No
No
No
No
Yes, simple block diagram
No
No
Yes
Yes, division of total
No
No
No
No
Yes, factored 45%
Yes, factored 45%
No, preliminary data
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes, preliminary estimate
Yes, preliminary estimate
Yes, preliminary estimate
Yes, preliminary estimate
No
Yes, 30%
Yes, from engineering
manuals 30%
No, preliminary data
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes, quote
Yes, quote
Yes, quote
Yes, quote
Yes, quote
Yes, 15%
Yes, from vendor quotes and
take-offs 15%
66. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Characteristics of Scoping, Pre-Feasibility,
and Feasibility Studies – A5
(continued)
CATEGORY
CONCEPTUAL
STUDY/SCOPING STUDY
PRE-FEASIBILITY STUDY FEASIBILITY STUDY
INFRASTRUCTURE
Industrial Infrastructure Facilities
Facilities list
Power and water parameters
Full site plan
Social Infrastructure Facilities
Facilities list
Housing
Schools
Hospitals
Other
Infrastructure Capital and Operating Cost Estimates
Consumables list
Personnel list
Infrastructure operating cost estimates
Infrastructure capital cost estimates
Yes, with minimum detail
Yes, preliminary
No
Yes, with minimum detail
No
No
No
No
No
No
Yes, factored 45%
Yes, factored 45%
Yes
Yes
Yes
Yes
Yes, preliminary
Yes, preliminary
Yes, preliminary
Yes, preliminary
Yes
Yes
Yes, 30%
Yes, from engineering
manuals 30%
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes, 15%
Yes, from vendor quotes &
take-offs 15%
MANAGEMENT, LABOR & ADMINISTRATION
Personnel
Personnel lists
Training requirements
Personnel Capital & Operating Cost Estimates
Consumables list
Personnel operating cost estimates
Personnel capital cost
No
No
No
Yes, factored 45%
Yes, factored 45%
Yes
Yes
No
Yes, 30%
Yes, 30%
Yes
Yes
•Yes
Yes, 15%
Yes, 15%
67. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Characteristics of Scoping, Pre-Feasibility,
and Feasibility Studies – A6
(continued)
CATEGORY
CONCEPTUAL
STUDY/SCOPING STUDY
PRE-FEASIBILITY STUDY FEASIBILITY STUDY
MARKETS, PRODUCTS AND SALES
Markets, Products and Sales
Products
Volume
Prices
Sales organization
Sales Related Capital and Operating Cost Estimates
Personnel list
Consumables list
Sales related operating cost estimates
Sales related capital cost estimates
Yes, preliminary
Yes, preliminary
Yes, preliminary
No
No
No
Yes, factored 45%
Yes, factored 45%
Yes
Yes
Yes
Yes, preliminary
Yes
No
Yes, 30%
Yes, 30%
Yes
Yes
Yes
Yes, preliminary
Yes
No
Yes, 15%
•Yes, 15%
ENVIRONMENTAL AND PERMITTING
Environmental
Permit list
Environmental Impacts
Environmental Compliance Cost Estimates
Personnel list
Environmental related operating cost estimates
Environmental related capital cost estimates
No
Yes, preliminary
No
Yes, factored 45%
Yes, factored 45%
Yes
Yes
Yes
Yes, 30%
Yes, 30%
Yes
Yes
Yes
Yes, 15%
Yes, 15%
68. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Characteristics of Scoping, Pre-Feasibility,
and Feasibility Studies – A7
(continued)
CATEGORY
CONCEPTUAL
STUDY/SCOPING STUDY
PRE-FEASIBILITY STUDY FEASIBILITY STUDY
DEVELOPMENT SCHEDULE AND COSTS
Development Schedule
Development methodology
Development schedule
Development Costs
Personnel list
Development related operating cost estimates
Development related capital cost estimates
•Yes, preliminary
Yes, preliminary
No
No
No
•Yes
Yes
Yes
Yes, 30%
Yes, 30%
•Yes
Yes
Yes
Yes, 15%
Yes, from vendor quotes &
take-offs 15%
PROJECT ECONOMICS
Financial Issues
Taxes
Royalties
Fees
Licenses
Economic Issues
Economic parameters
Discount rate determination
Cash flows
Investor returns
Debt analysis
1.Sensitivities
Yes, preliminary
Yes, preliminary
Yes, preliminary
Yes, preliminary
Yes, preliminary
Yes, preliminary
Yes, preliminary
Yes, preliminary
No
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes, preliminary
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
69. BEHRE DOLBEAR
founded 1911 MINERALS INDUSTRY ADVISORS
Characteristics of Scoping, Pre-Feasibility,
and Feasibility Studies – A8
(continued)
CATEGORY
CONCEPTUAL
STUDY/SCOPING STUDY
PRE-FEASIBILITY STUDY FEASIBILITY STUDY
SUMMARY AND RECOMMENDATIONS
Operational Parameters
Title and ownership
Geology
Ore reserves
Mining and processing rates
Development period and mine life
Metal/mineral recoveries
Sales
Operating cost estimates
Capital cost estimates
Financial Parameters
Cash Flows
NPV, IRR, and ROI
Mostly assumed and factored
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Some engineering basis
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Some engineering basis
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Editor's Notes
LabTitle might be better as “………………Consumption Also Exploded”Label “y” axis as “Percent of Global Consumption” ? ?