Register in advance to attend any of four informative workshops that are described below, presented by leading experts. The format encourages all to have your questions answered. The workshops with case studies and examples of best practices will encourage your participation in an inviting environment with refreshments and time to meet others. Register here to attend workshops, conference and receptions
Photos below are from workshops at the 2017 CTMF conference
Two Pre-Conference Workshops on Sunday April 29
New York Marriott East Side, 525 Lexington Avenue at 49th Street
Noon for lunch; Start at 12:30 PM; Refreshment break at ~2:45 PM; Workshop ends at 4:30 PM
I. Improving strategic capital management with Integrated Valuation and Risk Modelling methods by Michael Samis, Associate Partner of EY, Toronto Ernst & Young
II. Application of enhanced techniques for assessing risks and opportunities in mineral resource estimates: some key points for mining finance professionals led by Abani R. Samal, Ph. D., Principal, GeoGlobal LLC with Harry Parker, Technical Director of Amec Foster Wheeler, a division of the Wood Group
Two Post-Conference Workshops on Wednesday May 2
Shearman & Sterling LLP, 599 Lexington Avenue, at corner of 53rd Street
Breakfast 8 AM; Start 8:30 AM; Refreshment Break; End 11:45 AM; Lunch ends at 1 PM
III. Efficient, effective due diligence for modern mining investments by Behre Dolbear on Wednesday May 2 at 8:00 - 11:45 AM at Shearman & Sterling LLP
IV. Sustainability in mining – Innovation to reduce mining life cycle costs and impacts Led by Dr. Lisa Kirk, Ph.D., P.Geo.- Principal Biogeochemist and CEO of Enviromin Inc on Wednesday May 2 at 8:00 - 11:45 AM at Shearman & Sterling LLP
Two pre-conference workshops on Sunday April, 29 at the New York Marriott East Side at 525 Lexington Avenue, at 49th Street. Join us at Noon for lunch; Starts at 12:30 PM; Refreshment break at ~2:45 PM; Workshop ends at 4:30 PM
Workshop I: Improving strategic capital management with Integrated Valuation and Risk Modelling methods: Led by Michael Samis, Associate Partner of EY, Toronto Ernst & Young
Volatility in commodity prices and financial markets compounded by technical uncertainty make it difficult for natural resource industry professionals to assess the risk exposures and identify the factors influencing their Strategic Capital Management (“SCM”) decisions. Integrated Valuation and Risk Modelling (“IVRM”) methods form a toolkit comprising advanced finance theory, risk management concepts, decision analytics, statistical analysis and numerical methods that can be used to analyse a wide range of SCM problems. Types of applications include comparing alternative project development strategies, innovative financing structures, mergers and acquisitions, corporate portfolio risk and enterprise risk management.
This seminar demonstrates why IVRM is an important extension to the static cash flow models commonly used for investment analysis in the natural resource industries. It includes an extended section discussing how to model commodity price forecast uncertainty and the forecast uncertainty characteristics for a range of metals and energy prices.
Case studies are used to illustrate important IVRM concepts and their application to industry problems. The case studies include:
a) The value and risk management benefits of staged development
b) Financing a project with a streaming (off-take) agreement
c) Influence of country risk on corporate portfolios
Professionals attending this workshop will improve their understanding of how the IVRM framework can be used to recognize the unique cash flow risk characteristics of individual projects and the how these characteristics influence value and risk at both a project and corporate portfolio level.
- Overview of IVRM and Strategic Capital Management
- Limitations of static cash flow models
- Risk-based Strategic Capital Management
- Dynamic cash flow modelling with IVRM
- Effective modelling of commodity price forecast uncertainty
- Three key components of modelling commodity price uncertainty
- Types of commodity price uncertainty models
- Models for gold, silver, copper and WTI oil
- Risk management benefits of flexible staged project development
- How flexibility influences risk and value
- Managing capital investment risk with staged development
- Information gain through dynamic cash flow modelling
- Value and risk transfer effects of stream (off-take) finance
- Dynamic risk and value transfer through finance
- Risk exposure and value transfer between equity and streaming
- Information gain through dynamic cash flow models
- Impact of country risk on corporate portfolios
- Representing country risk as a cash flow loss model
- Cash flow level, project level and portfolio level country risk effects
- Financing strategies for reducing country risk effects
Professionals attending this workshop will improve their understanding of how the IVRM framework can be used to recognize the unique cash flow risk characteristics of individual projects and the how these characteristics influence value and risk at both a project and corporate portfolio level. The course will be of interest to professionals involved with corporate development, financial reporting, operations, project design, risk management, and corporate strategy.
Michael Samis, Ph.D., P.Eng. – Associate Partner, EY Ernst & Young Mike is a mining engineer with more than 25 years of professional and research experience in the natural resource industries. He specializes in analyzing Strategic Capital Management problems for natural resource companies. His work ranges from analyzing investments in individual projects through to corporate portfolio analysis and involves complex forms of flexibility, financing, and risk exposure. In 2013, the Canadian Institute of Mining and Metallurgy (“CIM”) awarded Mike with the Robert Elver Award for his contributions to the Canadian mining industry in the field of mineral economics. He is a registered Professional Engineer in Ontario, Canada and he holds a Ph.D. from the University of British Columbia that combines the fields of mining engineering and finance. Dr Samis is currently an Associate Partner at the Toronto office of EY’s Transaction Advisory Service where he and his team also value complex financial securities such as financial derivatives, employee stock options and contingent contracts.
Mauricio Zelaya, Ph.D. – Vice President, Ernst & Young, Toronto EY Ernst & Young Mauricio is a PhD trained econometrician with extensive experience providing econometrics and statistical modelling services for both private and public sector clients. He specializes in the economics of innovation, industrial organization, and more generally, the application of economic theory to real business issues. His work in this area spans across numerous industries, from oil & gas and mining to finance, healthcare, and pharmaceuticals. Dr. Zelaya is currently a Vice President in the Toronto office of Ernst and Young’s Economic Advisory practice, where in addition to providing econometric and statistical modelling services, he is also a sessional lecturer in Economics at the Schulich School of Business at York University.
David Laughton, Ph.D. – Principal, David Laughton Consulting, Ltd. and Adjunct Professor, University of Alberta School of Business For over 30 years, David has been a leading consultant helping major corporations to create and use better models of the value of risk and flexibility so that they can improve their ability to make better real asset decisions. His consulting work is based on his extensive applied research which began when he was a key participant in the seminal research programme in this field at the MIT Center for Energy Policy Research.
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Workshop II: Application of enhanced techniques for assessing risks and opportunities in mineral resource estimates: some key points for mining finance professionals Led by Abani R. Samal, Ph. D., Principal, GeoGlobal LLC with Harry Parker, Technical Director for Amec Foster Wheeler, a division of the Wood Group.
A computerized model of a mineral deposit is commonly used to estimate the total grades and tonnages of a mineral resources which contributes substantially to the assessment value of the deposit under consideration. There are many ways one can estimate the mineral resources. The most common resource modeling techniques are very good at providing an estimate without any information for assessing risks and opportunities in the estimate of mineral-resources in a deposit. For example one often will see written: ‘A gold (Au) - silver (Ag) deposit with 150 MT of resources at 2.8 g/t Au and 81 g/t Ag’. This statement tells me, it is likely this deposit can produce about 150 MT of material in its life time with estimated average grades of 2.8 g/t Au and 81 g/t Ag. However, it would be very helpful if instead it could be said that: ‘It is a deposit with 150 (± 10%) MT of mineral resource at 2.8 ±0.21 g/t Au and 81± 3.6 g/t Ag’. By indicating a range of possibilities for the grades and associated tons of the resource in this deposit, provides at least one measure of risk and potential opportunity associated with the inherent variability of the commodity (Au and Ag in this example) in a mineral deposit. The mining finance professionals can incorporate this information for flexing their financial models to properly incorporate the inherent risks and opportunities.
Today, various advanced resource estimation techniques are available which can generate estimates of mineral resources along with measures of risks and opportunities associated with the estimates. These information can realistically be are relied upon by the financing community. In this workshop, the instructors will discuss a variety of ways to interpret, question and understand some of the techniques used for resource estimation and methods to assess some of the risks associated with estimates of mineral resources. The participants will enjoy the presentations with some real life examples of what can be termed a mineral resource and reserve, per relevant industry standards. These examples will include drill targeting to optimize exploration results at a porphyry copper deposit in South America and determination of the effect of selective mining on recoverable tonnage and grade and resultant cash flows.
Presenter Dr Abani R Samal is the owner and Principal of GeoGlobal, LLC, Salt Lake City, Utah. He is in mining industry since 1996. He has worked worldwide in various projects. Dr Samal is well recognized in industry for his expertise in advanced geostatistics, mineral resource estimation, and strategic advice for mineral resource development. Currently he is providing consulting services to exploration and mining companies. Most recently he advised the World Bank, Rio Tinto and Government of Nigeria.
Dr Samal holds a Master of Technology (M Tech) degree from the Indian School of Mines (India); a DIC & MS in Mineral Deposit Evaluation from Imperial College, London and PhD from Southern Illinois University, Carbondale, USA. He has training and experience in mineral deposit evaluation. He is a Registered Member of SME and a Fellow of Society of Economic Geology (SEG) and a Certified Professional Geologist (CPG). He is an active contributing member of the committee that published the 2014 SME Guide for Reporting Exploration Results, Mineral Resources, and Mineral Reserves (the 2014 SME Guide). He is an honorary representative of CRIRSCO since 2015.
Harry Parker is Technical Director for Amec Foster Wheeler, a division of the Wood Group. He holds BSc (Geol) and PhD (Geol) degrees from Stanford University. He holds an AM (Geol) from Harvard and a MS (Statistics) from Stanford. He has been a consulting mining geologist and geostatistician for over 40 years and has been active in resource and reserve estimation for over 200 projects on six continents. He has used conditional simulation to evaluate the effects of uncertainty on tonnage and grade, and has used these to develop financial scenarios reflecting the uncertainty in common metrics such as NPV. He has also studied and optimized the effect of selectivity on financial outcomes for mineral projects. Harry is past chairperson of CRIRSCO, the Committee for Mineral Reserves International Reporting Standards and is Co-Chairman of the SME’s Mineral Resources and Reserves committee.
Amec Foster Wheeler, a division of the Wood Group
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Sunday April 29 Evening Reception 5 to 7 PM
Join with fellow workshop delegates and others after the pre-conference workshops for a networking reception from 5 to 7 PM Sunday April 29 for beverages and hors d'oeuvres at the New York Marriott East Side at 49th Street. Meet with others traveling in to New York to attend the conference as well as other bankers, analysts, investors and interested professionals. Register on line here
Two Post-Conference Workshops - Wednesday May 2
Shearman & Sterling LLP at 599 Lexington Avenue, corner of 53rd Street
Breakfast at 7:45 AM; Start at 8:30 AM; Refreshment break at ~9:45 AM; End at 11:45 AM; Lunch ends 1 PM
Workshop III: Efficient, effective due diligence for modern mining investments - Presented by Behre Dolbear
Learn how to undertake a staged, yet comprehensive approach to mining project due diligence. The goal of this workshop is to equip attendees with an efficient, effective approach to understanding their potential project’s risks and determining valuation. Topics to be covered will include basic technical information that needs to be reviewed, risks analysis, capital and operating cost and management evaluation.
Alongside topics on traditional mining due diligence requirements, understand the impacts industry trends in technology deployment are having on production costs along with changing community and consumer influence increasing impacts with new sustainability and supply chain expectations. This workshop will cover:
- Fatal flaw analysis of resources/reserves, mining methods, metallurgical recoveries as well as risk analysis including capital and operating cost issues, country and management risks.
- Sourcing, measuring and applying the impact of new production technologies on your asset valuation
- Increasing supply chain transparency and sustainability expectations by consumers and investors
- Quantifying these impacts on projects and stakeholders through Social Return on Investment (SROI) economic analysis
- Brownfield verses Greenfield projects, key differences in their risk and investment assessment
Attendees will be taken through these topics and receive a detailed checklist as reference for their future investment due diligence.
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IV. Sustainability in mining – Innovation to reduce mining life cycle costs and impacts - Led by Dr. Lisa Kirk, Ph.D., P.Geo.- Principal Biogeochemist and CEO of Enviromin Inc on Wednesday May 2 from 8:00 for breakfast, starting at 8:30 through 11:45 AM followed by a lunch ending at 1 PM at Shearman & Sterling LLP
Global efforts to improve circular economy distinguish mining as an industry with significant potential to improve life cycle efficiency and sustainability. Circular economy is based on a closed-loop concept founded in industrial ecology, wherein wastes become resource inputs for other production processes. More sustainable methods of extracting and processing of minerals, with more efficient management of externalities, has great potential to reduce the life cycle risk and cost of mineral production. Meeting these challenges will require innovation in extractive and environmental technology as well as policy.
This workshop will address the question of whether the loop can indeed be closed for the historically linear production of finite mineral resources, and explore opportunities for narrowing the gap at a systems level. Specific opportunities include in situ mining; enhanced use of biotechnology in metallurgy, waste management and water treatment; and design of waste for secondary use.
Workshop leader Dr. Lisa Kirk, Ph.D., P.Geo.- Principal Biogeochemist and CEO of Enviromin Inc. works to improve the circular economy of mining through the application of biotechnology and industrial ecology principles to in situ mining, waste management, and water treatment. She will highlight biotechnology opportunities for innovation and illustrate their value to improved circular economy and reduced mining costs. The application of best-available biotechnology can improve process efficiency, reduce waste production, protect water resources, and improve the circular economy of a mostly linear minerals industry. This, in turn, will reduce liability and improve social license for this beleaguered but essential industry.
The workshop will begin with an overview of the Circular Economy concept. We will then examine the need to close the loop in mining on a financial basis, and move on into opportunities to accomplish this through systems engineering, technical innovation and policy. We will conclude our workshop with a panel-led discussion.
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All must register in advance to attend the CTMF conference, workshops, and receptions. You do not have to attend the conference to register to attend the workshops and or receptions. Discount rates end March 15. Space is limited. Visit program for the agenda. There are no walk ins. Registration will be monitored and may need to be closed in advance, as occurred in 2017.
We hope to see you at
SME's 6th annual Current Trends in Mining Finance Conference - Investing in Technology and Innovation & Managing Disruption and Risk in the New Normal - Connecting Mining, Finance and Engineering Executives TM - Sunday April 29 to Wednesday May 2
All attendees must register in advance on line
Visit agenda for updates and schedule changes