Build and analyze mining financial models for project finance, corporate finance, or private equity.
Financial modelling is the most important analysis tool in a company’s decision-making arsenal. This course is specifically designed to provide dealmakers, analysts and other financing professionals with the tools they would require in order to analyze any mining financial model, and prepare powerful summarization outputs upon which decisions would be made.
This course is ideal for fast-tracking industry professionals in their career path – teaching them to analyze existing client models and also create their own models for various applications. The material is well suited to middle-office and front-office professionals, teaching them to assess the risks of funding mining opportunities.
This course blends theoretical principles with real industry insights. Its bottom-up nature is designed to provide a holistic journey, from the initial construction of a model, to the final financial assessment in order to be able to make an investment decision (whether debt or equity related). This would allow participants to deeply analyze potential funding opportunities, structure tailor-made financing packages, and produce comprehensive and concise outputs which summarize bulky raw data.
By the end of the course you will be able to effectively construct a financial model that describes the process flow of your mining business, from raw material extraction, all the way until net profit after tax. You will learn how to itemize all cost and revenue drivers, model tax, working capital, and debt funding.
The concepts taught are based on years of investment banking experience, and billions of dollars worth of project financing deals in multiple jurisdictions.
Students would need to download the ABC Mining Financial Model (provided for free) in order to participate in the course.
What you’ll learn
- How to Structure financial models to tell a complete story of a business from input cost to net profit or retained cash
- Demonstrate knowledge of, and analyze the main drivers of costs and profitability for a company
- Construct a process flow diagram from input, to production, to sale, and analyze each step of the process flow in terms of its impact on profitability
- How to construct a summary sheet, which illustrates all the key information and features of a business
- Perform stress testing and downside analysis on models via goal seek and data tables
- Construct waterfall diagrams assessing the impact of various factors on the profitability of a company
- Excel techniques for data clean up, financial calculations and data summary
- Construct key graphs which display multiple pieces of information clearly and coherently
- Understand the difference between analysing accounting statements vs a cashflow model from a banker’s perspective
- Drilling deep into a business’ cost and revenue structure to uncover bottlenecks or weak spots
- Determining the optimal capital structure of a company using the Weighted Average Cost of Capital (WACC) and gearing ratios
- How to use a Discounted Cash Flow (DCF) model to value an investment or company
- Calculating the Enterprise Value and Equity Value of a company/project using perpetual growth vs EBITDA multiple
- Calculating debt capacity and sculpting debt repayments for a project or company
- Gearing and financial covenant ratios
Who this course is for:
- Analysts and investors wishing to obtain a deeper appreciation for project financing concepts, with particular attention to mining and minerals;
- Beginner investment bankers looking to accelerate their growth in the field of investment banking project finance;
- Employees of mining companies wishing to broaden their knowledge of raising debt funding for their companies;
- Mining professionals with chemical or engineering training, wishing to expand their knowledge into the disciplines of raising funding and debt finance in particular;
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