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FIN327 Mining Investment Analysis

This subject is designed to provide students with a working knowledge of the issues and calculations involved when analysing and valuing a mining project or mining company. The characteristics of the Australian mining industry are examined before focusing on the technical determination of inputs into the valuation. This involves analysing the costs of mining and mineral processing stages. Students will work through a case study which is a practical demonstration of how a mining project is evaluated. Other financing alternatives are also explored.

This subject contributes to the following majors: investment management and financial analysis.

For more information, please refer to the subject outline.

  • Learning outcomes
    • At the completion of this subject students should be able to:

      1. Explain the basic geological processes that lead to the formation of mineral and hydrocarbon deposits.
      2. Assess the basic techniques of ore extraction and mineral processing and the impact of various methods on the cost structure of an operation.
      3. Explain the structure of the commodities market and the various supply and demand factors that impact upon the pricing of mineral commodities.
      4. Evaluate the feasibility of a mining project in the context of the resources industry.
      5. Construct an earnings model to forecast future company earnings.
      6. Apply valuation techniques to listed mining companies.
  • Subject content
    • Topic Title
      Topic 1 Introduction to mining investment analysis
      Topic 2 Geology and exploration
      Topic 3 Mining methods
      Topic 4 Mineral processing and extractive metallurgy
      Topic 5 The oil and gas industry
      Topic 6 Data, valuation and modelling
      Topic 7 Case study: Reserves, project definitions and project cash flows
      Topic 8 Legislation and the licence to operate
      Topic 9 Mineral markets and pricing
      Topic 10 Share evaluation

  • Assessment
  • Prerequisites
    • Students enrolling in a Masters level elective subject are assumed to have the pre-requisite knowledge in the three core subjects (FIN101, FIN102, FIN103 and FIN114 (for students enrolled before 2014)).

      Kaplan recommends that you complete the following Kaplan Online subject (or have a thorough working knowledge of the content) prior to enrolling in this unit:

  • Course transition subject equivalence
    • Students who transition from a SIA/Finsia/Kaplan course and have completed the following subject within the course completion time frame may not also complete the subject:

      • E132 Mining Investment Analysis
      • FIN227 Mining Investment Analysis
  • Reading list
    • Prescribed text

      • Rudenno, V 2012, The mining valuation handbook: Mining and energy valuation for investors and management, 4th edn, John Wiley & Sons, Milton, Qld. ISBN 9780730377078.

      Retailers of educational books include Co-op Bookshop and Boffins Bookshop. Texts can also be borrowed from the Kaplan library or other libraries. Details of required and further reading are provided in the subject room.  Purchase of any text other than a prescribed text is not required.