Table of Contents

Acknowledgements. Introduction. 1 The resources industry 2 A quick guide to financials 3 Feasibility studies 4 Commodity values and forecasting 5 Resource project considerations 6 Classification of resources and reserves 7 Mining and hydrocarbon recovery 8 Indicative capital and operating costs 9 Hedging commodities and exchange rates 10 Taxation, depreciation, royalties and exploration standards 11 Valuation and pricing techniques 12 Quantifying the risk 13 Cut-off grade theory and practice 14 Share price performance 15 Impact of exploration and expansion 16 Determining the appropriate discount rate 17 Dealing with inflation 18 Agricola mining - a hypothetical example 19 Commodity profiles 20 Sources of information Appendix A: Australian Native Title Appendix B: Royalty rates Appendix C: Economic geology primer Appendix D: Project details Appendix E: Exchanges rates and CPI Appendix F: Continuous discounting and annuities Appendix G: Abbreviations, conversions and energy factors Glossary Bibliography and references Index

About the Author

Victor Rudenno holds a Bachelor of Mining Engineering, a Master of Commerce and a PhD in Mining Economics. He was voted by his peers as one of the top three energy analysts in Australia in the BRW 1994 analyst survey. He is a Senior Fellow of the Financial Services Institute of Australia and a member of the Australasian Institute of Mining and Metallurgy. He is also the principal lecturer in mining economics for Kaplan Professional.