FIN327 Natural Resource Equity Analysis

This subject examines finance and its application in the resource 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.

This subject contributes to the investment analysis major.

For more information please refer to the subject outline.

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

      1.  Explain the geological processes that lead to the formation of mineral and hydrocarbon deposits.
      2.  Assess 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.  Explain the structure of the commodities market and the various supply and demand factors that impact upon the pricing of resource sector commodities.
      4.  Evaluate the feasibility of a resource and energy project.
      5. Construct an earnings model to forecast future company earnings.
      6.  Apply valuation techniques to listed companies in the resources and energy sector.
  • 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

  • Assessment
    • Assessment Type Description Assessed Weighting
      Online taks 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
    • 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
      • FIN327 Mining Investment 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.