For its Wednesday, March 28, 2018 presentation, the CIM Red Lake Branch, in collaboration with CIM’s Management and Economics Society, is pleased to welcome:
Michael Samis, Ph.D.
Associate Partner, EY
who will deliver a presentation on:
Managing Capital Risk Exposure by Design
Abstract: The mining industry has been criticized for over-investing in project by front-loading capital investments. This criticism reflects the irreversibility of capital investment which can lead to negative returns and value destruction when business conditions turn hostile. An Integrated Valuation and Risk Modelling (IRVM) framework can help companies consider the possibility of both hostile and favorable commodity price environments in their investment decision-making. IVRM is illustrated with a case study involving design choice at a prefeasibility project. In this example, there is a choice between either a staged development or a front-loaded capital design when there is gold price uncertainty. The analysis shows how static cash flow models may lead to front-loading capital with unnecessarily high risk exposure while a dynamic IVRM analysis brings out the lower capital risk of staged development.
BIO: Dr. Michael Samis is a leading Integrated Valuation and Risk Modelling practitioner in the natural resource industries with more than 25 years of mining experience. He has extensive professional experience valuing mining and petroleum projects with complex forms of flexibility and risk. His assignments ranged from exploration stage to late-stage capital investments and include project financing and contingent taxes. In 2013, the CIM awarded Mike with the Robert Elver Award for his contributions to mineral economics. He holds a Ph.D. from the University of British Columbia in mining engineering and finance and is a registered Professional Engineer in Ontario.
Wednesday, March 28, 2018
Presentation at 6:00pm
at
Red Lake Royal Canadian Legion (Branch 102)
31 Highway 105, Red Lake
Ontario P0V 2M0
Seminar is complimentary and seats are limited. Register by Wednesday, March 13, to secure your place. Please RSVP by replying to Owen00009@gmail.com if you are interested in attending. This is also an excellent networking opportunity. So we can best service all who are interested and able to join us at this upcoming event please register for it if you are confident that you are indeed able to attend it. Thank you for your interest and understanding.
Thank you to our sponsors, Red Lake Royal Canadian Legion (Branch 102), for providing the space, and Atlas Copco. A special thank you also to the CIM Foundation for financial sponsoring this upcoming Distinguished Lecturer series. The CIM Foundation has been doing so since 1972.
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