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The Mining Valuation Handbook: Mining and Energy Valuation for Investors and Management, 4th Edition

Book Description

The essential guide to investing in mining opportunities, now in its Fourth Edition

A comprehensive guide to mining investment analysis designed for use by financial and mining analysts, executives, and investors, The Mining Valuation Handbook: Mining and Energy Valuation for Investors and Management has become an essential resource for assessing the value and investment potential of mining opportunities. Fully revised and updated, this fourth edition of the classic text provides new and up-to-date information to better explain the mysteries surrounding the resources industry.

Written by Victor Rudenno, a leading global expert on mining investment analysis and consultant to mining companies, financial bodies, and governments, The Mining Valuation Handbook: Mining and Energy Valuation for Investors and Management, Fourth Edition covers a wide range of essential topics, including: feasibility studies, commodity values and forecasting, classification of resources and reserves, indicative capital and operating costs, valuation and pricing techniques, qualifying risk, the impact of exploration and expansion, and more.

  • Fourth edition of the bestselling text on assessing mining investment opportunities

  • Author Victor Rudenno is a respected global expert on mining investment analysis

  • Key topics, including feasibility studies, valuation techniques, and risk qualification are covered in detail

Packed with invaluable mining information for the financial industry and financial information for the mining industry, The Mining Valuation Handbook is the definitive guide to assessing and investing in mining opportunities.

Table of Contents

  1. Cover
  2. Title Page
  3. Table of Contents
  4. Foreword
    1. Dedication
    2. Acknowledgements
    3. Introduction
  5. Chapter 1: The resources industry
    1. What resource companies do
    2. What makes resource companies different from industrials?
    3. Commodity price volatility
  6. Chapter 2: A quick guide to financials
    1. Capital costs
    2. Revenue
    3. Operating costs
    4. Other costs
    5. Depreciation
    6. Taxation
    7. Cash flow
    8. Worked example
  7. Chapter 3: Feasibility studies
    1. Components
    2. Corporate and project debt
    3. When things go wrong
    4. A question of forecasting or best guessing
  8. Chapter 4: Commodity values and forecasting
    1. Commodity price forecasting
    2. Statistical - mean reversion
    3. Futures
  9. Chapter 5: Resource project considerations
    1. Exploration
    2. Confidence level
    3. Calculating resources
    4. Geostatistical estimation and kriging
    5. Estimating oil and gas resources
    6. Test of wells
  10. Chapter 6: Classification of resources and reserves
    1. Definitions
    2. Diamond exploration
    3. Reporting coal resources and reserves
    4. Reporting oil and gas reserves
  11. Chapter 7: Mining and hydrocarbon recovery
    1. Surface mining
    2. Underground mining
    3. Oil and gas drilling
    4. Marketing
    5. Mineral and hydrocarbon processing
    6. On-site hydrometallurgical recovery
    7. Mineral and metallurgical problems
    8. Oil and gas processing
    9. Infrastructure
    10. Smelting and refining
  12. Chapter 8: Indicative capital and operating costs
    1. Indicative capital costs - rule of thumb
    2. Indicative operating costs - rule of thumb
    3. Gold and platinum
    4. Base metal mining
    5. Offshore mining
    6. Oil and gas
    7. Diamonds
    8. Mineral sands
    9. Iron ore
  13. Chapter 9: Hedging commodities and exchange rates
    1. Exchange-traded futures
  14. Chapter 10: Taxation, depreciation, royalties and accounting standards
    1. Taxation
    2. Government and state/territory royalties
    3. Accounting standards for exploration
  15. Chapter 11: Valuation methodologies
    1. Fundamental value
    2. Income approach
    3. Market approach
    4. Cost base approach
    5. Charting, technical analysis and nomograms
  16. Chapter 12: Takeovers and fair value allocation
    1. Takeovers and mergers
  17. Chapter 13: Quantifying the risk
    1. Sensitivity analysis
    2. Probability analysis
  18. Chapter 14: Cutoff grade theory
    1. Initial estimate
    2. Impact on fundamental value
  19. Chapter 15: Share price performance and real options
    1. Value in the ground
    2. Options value
    3. Real options
  20. Chapter 16: Impact of exploration, development and expansion
    1. Valuing an initial discovery
    2. High grade is best
    3. Development time frame
    4. Disappearing resource
    5. Project expansion
  21. Chapter 17: Determining the appropriate discount rate
    1. Resource company betas
    2. Capital asset pricing model
    3. Weighted average cost of capital
  22. Chapter 18: Dealing with inflation
  23. Chapter 19: Agricola Mining - a hypothetical example
    1. Exploration discovery
    2. Ore reserves and waste
    3. Cutoff grade
    4. Mining schedule
    5. Feasibility study
    6. Fundamental value
    7. Sensitivity analysis
    8. Probability analysis
  24. Chapter 20: Commodity profiles
    1. Aluminium, Alumina and Bauxite
    2. Chromium
    3. Coal
    4. Cobalt
    5. Copper
    6. Diamonds
    7. Gold
    8. Heavy mineral sands
    9. Iron ore
    10. Lead
    11. Lithium
    12. Magnesium (Magnesite)
    13. Manganese
    14. Natural gas
    15. Nickel
    16. Oil and oil shale
    17. Phosphate
    18. Platinum group metals (PGMs)
    19. Potash
    20. Rare earths
    21. Silver
    22. Tantalum
    23. Tin
    24. Tungsten
    25. Uranium
    26. Zinc
    27. Other commodity prices
  25. Appendix A: Sources of information
  26. Appendix B: Australian Native Title
  27. Appendix C: Royalty rates
  28. Appendix D: Economic geology primer
  29. Appendix E: Project details
  30. Appendix F: Exchange rates and CPI
  31. Appendix G: Continuous discounting and annuities
  32. Appendix H: Abbreviations, conversions and energy factors