The Management & Economics Society (MES) of CIM (CIM MES), with the support of EY and the University of Alberta Executive MBA Program, is pleased to offer the following half-day seminar:

Improving Strategic Capital Management with Integrated Valuation and Risk Modelling (IVRM) Methods

Short Course (half-day seminar)

Date:

Thursday, May 18, 2017
8:30 AM to 12:00 Noon CST
(with registration from 8:30 – 9:00AM)

Location:

The University of Alberta – Calgary Centre
Suite 120 – 333 5th Ave. SW
Calgary, Alberta

OVERVIEW

Volatility in commodity prices and financial markets compounded by technical uncertainty make it difficult for natural resource industry professionals to assess the risk exposures and identify the factors influencing their Strategic Capital Management (“SCM”) decisions. Integrated Valuation and Risk Modelling (“IVRM”) methods form a toolkit comprising advanced finance theory, risk management concepts, decision analytics, statistical analysis and numerical methods that can be used to analyse a wide range of SCM problems. Types of applications include comparing alternative project development strategies, innovative financing structures, mergers and acquisitions, corporate portfolio risk and enterprise risk management.

This seminar demonstrates why IVRM is an important extension to the static cash flow models commonly used for investment analysis in the natural resource industries. It includes an extended section discussing how to model commodity price forecast uncertainty and the forecast uncertainty characteristics for a range of metals and energy prices.

Case studies are used to illustrate important IVRM concepts and their application to industry problems. The case studies include:

• The value and risk management benefits of staged project development
• Financing a project with a streaming (off-take) agreement

Professionals attending this workshop will improve their understanding of how the IVRM framework can be used to recognize the unique cash flow risk characteristics of individual projects and the how these characteristics influence value and risk at both a project and corporate portfolio level.

TOPICS INCLUDE

Overview of IVRM and Strategic Capital Management:

• Limitations of static cash flow models
  • Risk-based Strategic Capital Management
  • Dynamic cash flow modelling with IVRM

• Effective modelling of commodity price forecast uncertainty
  • Three key components of modelling commodity price uncertainty
  • Types of commodity price uncertainty models
  • Models for gold, silver, copper and WTI oil

• Risk management benefits of flexible staged project development
  • How flexibility influences risk and value
  • Managing capital investment risk with staged development
  • Information gain through dynamic cash flow modelling

• Value and risk transfer effects of stream (off-take) finance
  • Dynamic risk and value transfer through finance
  • Risk exposure and value transfer between equity and streaming
  • Information gain through dynamic cash flow model

• Organizational issues with IVRM
  • Concerns for junior and senior resource firms
  • IVRM project team composition and skills sets
  • Information control at project and corporate level

INSTRUCTORS

Michael Samis, Ph.D., P.Eng. – Associate Partner, EY
Mike is a mining engineer with more than 25 years of experience in the natural resource industries. He specializes in analyzing Strategic Capital Management problems for natural resource companies. His work ranges from analyzing investments in individual projects through to corporate portfolio analysis and involves complex forms of flexibility, financing, and risk exposure.

David Laughton, Ph.D. – Adjunct Professor, University of Alberta, DGL Consulting
For over 30 years, David has been a leading consultant helping major corporations to create and use better models of the value of risk and flexibility so that they improve their ability to make real asset decisions. His consulting work is based on his extensive applied research as a key participant in the seminal research programme at the MIT Center for Energy Policy Research.

David Seymour, MBA, CMA – Vice President, EY
David is a Vice President in the Valuation & Business Modelling team in Calgary. He has over 15 years of business modelling and valuation experience that is highly specialized in the energy sector. Prior to joining EY, David had responsibility for financial modelling and preparing investment opinions on Canadian oil and gas companies and trusts. He has held senior roles in corporate finance and business development for Canadian oil and gas sector companies.

WHO SHOULD ATTEND

The course will be of interest to professionals involved with corporate development, financial reporting, operations, project design, risk management, and corporate strategy.

REGISTRATION (Prices include: +CA$15.13 Fee & GST/HST)

Registration (closes on: May 18, 2017): $200.00

Please click HERE to register!

Cancellations are not permitted within 72 hours of the start of the event, but you may send someone else in your place. For complete cancellation and refund policy, click HERE.

CERTIFICATE OF ATTENDANCE

CPE Credits: Participants will be provided with a Certificate of Attendance that can be submitted to their respective professional organizations for CPE hours.

For more information on upcoming CIM MES events, click HERE to check our calendar.

Thank you to our sponsor, University of Alberta – Calgary Centre, Executive MBA program, for providing the space!

Keep up to date by checking us out at: www.cimmes.org

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Click HERE to register!