SME Guide For Reporting Exploration Information, Mineral Resources and Mineral Reserves

The 2017 SME Guide for Reporting Exploration Results, Mineral Resources, and Mineral Reserves has been adopted by the Society for Mining, Metallurgy, and Exploration, Inc. (SME) and is therefore strongly recommended to be used by members of this organization.

The Guide is recommended as a minimum standard for reporting Exploration Results, Mineral Resources and Mineral Reserves for public and private purposes. In terms of the Guide, Public Reports are reports prepared for the purpose of informing investors or potential investors and their advisers on Exploration Results, Mineral Resources or Mineral Reserves.

MOVE MINING – MEXE-TE

O que é?

Competição online desenhada para ajudar a mudar a percepção da indústria mineira.

Quem pode participar?

Equipas de (sugestão: três ou quatro) estudantes e profissionais da área

VAMOS PARTICIPAR COM A CRIATIVIDADE QUE PENSA E FALA EM PORTUGUÊS
PORTUGAL, ANGOLA, BRASIL, MOÇAMBIQUE, TIMOR, CABO VERDE, S.TOMÉ & PRÍNCIPE, MACAU E TODA A COMUNIDADE LUSÓFONA ESPALHADA PELOS QUATRO CANTOS DO MUNDO

O prazo foi alargado até 15 de Novembro.

Para saber mais: http://www.movemining.org
ou contactem-me em luischambel@sinese.pt
ou vejam o vídeo

Mãos à obra.

wrong, something is very wrong

RISK UNDERVALUATION IN MINERAL PROJECTS

Reporting to markets should (have to!) be complete, independent and competent.

Risk is a key factor; in most cases, along with commodity price, the most important variable defining a project’s value. The importance of a good estimate of the risk measure (the discount rate in DCF models) cannot be overemphasized.

Yet, something is wrong, very wrong:

  • In most cases (in a sample of 77 documents reporting pre-feasibility, feasibility studies and valuation exercises of operating assets), the magical discount rates used in DCF are 5% and 8%, accounting for 26% and 27% of the cases (10% accounts for 17%). In 75% of the analised cases, the used discount rate is ≤ 8%. Let’s say you are an investor, would you accept a lower than 8% rate in most mineral projects?
  • The 5% magical number is pervasive in gold projects. A new rule can almost be written; IF gold THEN 5%.
  • Reports include countless pages of technical minutia and detail of doubtful utility for the average investor; yet only a handful of them has any discussion or justification of the chosen discount rate.
  • Country risk is irrelevant; I will grant that the 77 sample is relatively small but the anecdotal evidence shows that the same risk is attributed to projects in the US and Canada or in Burkina Faso and Colombia.

Please bear in mind these are preliminary results; as more data is compiled, new trends may develop. Although I tried to have a random sample, diamond and gold projects may be overrepresented (20 and 21 out of 77, respectively).

I will present these and other results at SME’s Mining Finance Conference in NYC on May 1 and 2, a little more than a week from now. If you are attending, I would like to discuss in person the reasons behind this and how should this (can it?) be remediated – or shouldn’t reporting to markets be complete, independent and competent?

Being a member of SME and of the Society of Economic Geologists – SEG I will try to discuss this issue within these professional organisations. Your comments (in person or through online fora) are always welcome.

Current Trends in Mining Finance Conference, New York 2017

SME – Society for Mining, Metallurgy, and Exploration
5th Annual Current Trends in Mining Finance (CTMF) Conference
New York, April 30th – May 3rd, 2017

Managing through the Cycle,
Investing for the Future

SME_HORZ

Intended for senior executives and mining industry specialists, bankers, financial analysts, investors, portfolio managers, and engineers, the CTMF Conference bring influential experts together to discuss opportunities, current trends and issues that affect mining and project finance, investment, raising capital, and project management, smart use of data and technology to manage project costs and risks.

The New York Section of the Society for Mining, Metallurgy & Exploration is the host and organizer of the SME’s annual Current Trends in Mining Finance Conference. In the heart of New York (where else?), the CTMF Conference format encourages networking and discussions  with colleagues, fellow professionals and key experts – at the Sunday Dinner, breakfasts, breaks, lunches and evening receptions and workshops.

Read the 2017 Conference’s Agenda here.
Please note, schedule and content is subject to change.
To check for any updates, revisit the Conference’s website.
Register here. Questions, comments, suggestions: Tim Alch.

The organisation thanks Shearman & Sterling LLP, the host of the 2017 CTMF Conference again at its conference facilities in  Midtown Manhattan. We also thank the Government of Quebec as a returning as Sponsor of the Monday May 1st Lunch – a Senior Official from Quebec will be a Key Note speaker.

Quebec will  also host an evening reception on Monday May 1st at their offices in Rockefeller Center to which  conference delegates will be invited.
Quebec is also returning with a delegation of mining companies.

At the dinner on Sunday April 30th, 2017 Neal Rigby, PhD, CEng, AIME, MIMMM, Corporate Consultant (Mining) at SRK Consulting will be one of two Guest Speakers. The Sunday dinner – after two pre-conference workshops – is an enjoyable time to meet others, including members of the New York finance, investment and analyst community.

 SME also thanks the other sponsors including:

Newmont Mining Corporation, EnviroSuite, Dassault Systemes, SRK Consulting,
Ernst & Young LLP, Hatch Ltd., Matamec Explorations,
Nemaska Lithium, Abernathy MacGregor, Golder Associates,
BDO USA LLP, Agapito Associates and others

Contact Tim Alch if you have questions and or would like to join in the support of CTMF with these  and other leading firms. Start improving your ROI by registering before March 31st: REGISTRATION.

Registration includes breakfasts, lunches and receptions on Monday, May 1st and Tuesday, May 2nd. The dinner on Sunday, April 30th and workshops are separate fees.

Geologia Económica e Mineração – recursos pedagógicos para professores

Understanding Minerals & Mining Through Education

Ainda falta mais de um mês (e mês de merecidas férias) mas quero partilhar um website com recursos pedagógicos sobre Geologia Económica e Mineração. A SME – Society for Mining, Metallurgy & Exploration organizou e disponibiliza os recursos em: http://www.mineralseducationcoalition.org.

Sim, a página está em inglês, mas a informação e os materiais disponíveis são valiosos; mais que uma dificuldade, é uma oportunidade. Boas férias; Agosto promete.

The Society for Mining, Metallurgy and Exploration Foundation supports scientific, technical, educational and other activities that foster interchange and understanding concerning the responsible development of the world’s mineral resources, and further the professional disciplines serving the minerals industry. The Minerals Education Coalition (MEC) is a program of the SMEF. Click here to visit the SMEF website.

The Society for Mining, Metallurgy & Exploration Inc. (SME) is a professional society (nonprofit 501(c)(3) corporation) whose more than 15,000 membership represents all professionals serving the minerals industry in more than 100 countries. SME members include engineers, geologists, metallurgists, educators, students and researchers. SME advances the worldwide mining and underground construction community through information exchange and professional development. SME’s staff is located in Englewood, Colorado. Click here to visit the SME website

Society for Mining, Metallurgy & Exploration – SME Scholarship Deadline Has Been Extended

SME – Society for Mining, Metallurgy & Exploration

The deadline for accepting applications for SME Scholarships has been extended to October 30, 2015. Multiple scholarships are available to SME student members who seek a career in the industry. Students may begin the application process here.

SME divisions and affiliations which offer scholarship opportunities are: Coal & Energy; Environmental; Industrial Minerals & Aggregates; Mineral & Metallurgical Processing; Mining & Exploration; WAAIME and the SME Foundation.

Start your application today!

Good luck.