Investment Banking: Mining Finance

An introduction to mining project and corporate finance

Created by: Perry Fisher
Corporate Trainer | Consultant | The Tauro Group

What Will I Learn?

• Understanding the phases of the life cycle of a mine from early mineral exploration to closure;
• Understanding the key priorities and milestones management would need to focus on at each state of a mine’s life cycle;
• Understanding the medium and long term strategic objectives of mine management with regards to risk mitigation and company growth.
• Be able to identify the appropriate sources of funding for each stage of a mine’s life;
• Understand the basic pros and cons of each method of financing;
• Understand the concept of structural and contractual subordination;
• Know what is meant by seniority of funding with respect to the ordinary course of business and in a liquidation scenario (cashflow waterfall)
• Understand the benefits and drawbacks to project financing;
• Appreciate deal structuring considerations of project financing transaction with regards to borrowers, guarantors, security structures, and secured assets;
• Be able to identify the various stakeholders within a project, and how they work together;
• Know how to structure a Gantt chart for the optimal timing of a project financing, and appreciate how different workstreams can be performed simultaneously;
• Understand the difference between project financing and corporate financing;
• Know the main corporate facility types used in a company’s capital structure;
• Understand the main risk factors to consider when judging whether a corporate client is a credible borrower or not;
• Be able to interpret a mining cost curve;
• Understand what the key issues are when analyzing a company’s historical performance and forecasts;

Requirements

• Basic knowledge of Microsoft Excel

Target audience

• 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;