G5111 Business in the exploration and production of mineral resources

Faculty of Science
autumn 2017
Extent and Intensity
2/0/0. 2 credit(s). Type of Completion: z (credit).
Teacher(s)
RNDr. Dan Štěpánský (lecturer)
Guaranteed by
doc. RNDr. Rostislav Melichar, Dr.
Department of Geological Sciences – Earth Sciences Section – Faculty of Science
Contact Person: doc. Mgr. Martin Ivanov, Dr.
Supplier department: Department of Geological Sciences – Earth Sciences Section – Faculty of Science
Timetable
Mon 18. 9. to Fri 15. 12. Thu 12:00–13:50 G2,02003
Prerequisites
( (!(PROGRAM(B-GE)||PROGRAM(N-GE)||PROGRAM(D-GE4)||PROGRAM(D-GE)||PROGRAM(C-CV))) || (NOW( G0101 Occupational healt and safety )&&NOW( C7777 Handling chemicals )))
Completed bachelor program.
Course Enrolment Limitations
The course is also offered to the students of the fields other than those the course is directly associated with.
The capacity limit for the course is 40 student(s).
Current registration and enrolment status: enrolled: 0/40, only registered: 0/40, only registered with preference (fields directly associated with the programme): 0/40
fields of study / plans the course is directly associated with
there are 29 fields of study the course is directly associated with, display
Course objectives
The course complements the studies of geology of natural resources by adding the basics of the evaluation and comparison of exploration/production investment projects.
The purpose of the course is to provide the students with the knowledge essential for a start of their own business careers either as independent contractors or within commercial entities in the Czech Republic and abroad.
Upon the completion of the course the students will understand the principles of business risks and taxations in various countries.
They will also be in the position to discuss and negotiate input and output parameters to the projects.
The following standard appraisal techniques will be covered: discounted cash flow method, internal rate of return method and their pros and cons. Expected monetary values and decision trees will be discussed for the prioritization of projects.
Learning outcomes
Upon the completion of the course the students will understand the principles of business risks and taxations in various countries.
They will also be in the position to discuss and negotiate input and output parameters to the projects.
The following standard appraisal techniques will be covered: discounted cash flow method, internal rate of return method and their pros and cons. Expected monetary values and decision trees will be discussed for the prioritization of projects.
Syllabus
  • Mineral resources industry in the historical and international context
  • Types of private participation to the mineral resources project and taxation principles
  • General state regulations of mineral resources industry and the current Czech mining law.
  • Business development, strategic thinking and decision making standards.
  • Investment decisions and its key parameters: revenue, risk, liquidity. Risk analyses, expected value, decision trees.
  • Investment project and its terminology (acquisition price, revenue, costs, depreciation, royalty, income tax, EBIT, EBITDA, EBT. Profit vs cashflow.
  • Project relevant revenues and costs.Investment appraisal based on payback period, return on capital employed.
  • Investment appraisal using DCF methods and the terminology,(NPV method, IRR method and their comparison.
  • Effect of inflation and taxation in the investment project.
  • Input to the project: production, price, taxes, reserves, OPEX, CAPEX. Break-even point
  • Profitability criteria, WACC, International project risk categories: economic, political, partnership.
  • Case study: a simple investment project.
Teaching methods
Lecture, discussions
Assessment methods
Completion of a simple project business model in a group of 3 to 5 students and its presentation.
Language of instruction
Czech
Further comments (probably available only in Czech)
Study Materials
The course can also be completed outside the examination period.
The course is taught once in two years.
Information on the per-term frequency of the course: Bude otevřen v podzimním semestru 2018/2019.
The course is also listed under the following terms Autumn 2016, Autumn 2018.
  • Enrolment Statistics (autumn 2017, recent)
  • Permalink: https://is.muni.cz/course/sci/autumn2017/G5111