FIN327 Applied Resource Sector Analysis

This subject has been discontinued; it will not be available for enrolment after Study Period 5, 2023.

This subject examines finance and its application in the mineral and energy sectors. It provides a basic understanding of fundamental technical concepts and terminology associated with the resource sector and energy markets with a focus on geology, exploration and mining methods, processing techniques and commodity markets. Students learn how to incorporate these concepts to financially evaluate resource sector projects, undertake project valuations and consider risk and uncertainty. Finally, students work through a case study and construction of a discounted cash flow valuation model of a current resource project.

For more information, please refer to the subject outline.

  • Learning outcomes
    • On successful completion of this subject, students should be able to:

      1. Examine the geological processes that lead to the formation of mineral and hydrocarbon deposits.
      2. Review the basic techniques of extraction and mineral processing of natural resources and the impact of various methods on the cost structure of an operation.
      3. Conduct independent research and evaluate various sources of information to analyse the structure of the commodities market and the various supply and demand factors that impact upon the pricing of resource sector commodities.
      4. Investigate, analyse and synthesise complex information to evaluate the feasibility of a resource and energy project.
      5. Formulate a valuation of a listed company in the resource and energy sector and communicate the findings to clients.
  • Subject content
    • Topic Title
      Topic 1 Introduction to Australian natural resource sector and investment analysis
      Topic 2 Geology and exploration
      Topic 3 Mining methods and mineral processing
      Topic 4 Oil and gas industry
      Topic 5 Primary energy economics
      Topic 6 Alternative and secondary energy markets
      Topic 7 Mineral markets and pricing
      Topic 8 Valuation and modelling
      Topic 9 Case study- Reserves, project definitions and project cash flows

  • Duration
    • 12 weeks.

  • Assessment
    • Assessment Type Description Assessed Weighting
      Task Commentary and evaluation of current topic in the energy sector Week 4 10%
      Exam Multiple choice exam Week 6 40%
      Assignment Short-answer and Excel-based modelling questions in response to a case study Week 12 50%

      Click here for an assessment timetable.

  • Prerequisites
    • There are no prerequisites for this subject. However please review the Assumed Knowledge tab to understand the prior knowledge Kaplan advises you should hold before enrolling in this subject.

  • Assumed knowledge
    • Whilst there are no prerequisites for this subject, Kaplan assumes that individuals have completed FIN203 Fundamentals of Equity Markets and FIN205 Business Valuation, or understand the content covered in those subjects, prior to undertaking FIN327 Natural Resource Equity Analysis.

  • Course transition subject equivalence
    • Individuals are not required to complete this subject if they have transitioned from a SIA/Finsia/Kaplan course and have completed the following subjects within the course completion timeframe:

      • E132 Mining Investment Analysis
      • FIN227 Mining Investment Analysis
      • FIN327 Mining Investment Analysis
      • FIN327 Natural Resource Equity Analysis

      For more information on the previous versions please click here. 

  • 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.