Pre-conference Half-Day Workshops, Monday 29 March 2010

08:00    Registration opens Refreshments served

Workshop A

09:00 – 13:00        Mining in a morning

Mining Journal presents a back-to-basics workshop

Led by Chris Hinde, Editorial Director of Mining Journal, the workshop will deliver a comprehensive but straightforward (no jargon) explanation of what the global mining industry is, and how it works. The event is aimed at people working on the periphery of the industry (the financial community, lawyers, service providers, etc) who would benefit from an overview of mining, and be in a better position to develop business opportunities as a result.

Agenda:

09.00-09.30             Introduction

09.30-10.15             Geology:

                                    Elements / Minerals / Metals

                                    Rocks / Geological processes

                                    Deposit types / Resources and reserves

10.15-10.50             Morning tea

10.50-11.30             Mining:

                                    Surface

                                    Underground

11.30-11.50             Processing

11.50-12.30             Economics:

                                    Supply and demand / Costs

                                    Market / Industry structure

12.30-13.00             Q and A

About your workshop leader:

Chris Hinde, Editorial Director, Mining Journal

Chris Hinde qualified as a mining engineer (with a BSc and PhD) from the University of Wales, Cardiff. He joined Anglo American Corp in South Africa, and worked for a few years

at its Western Deep Levels gold mine. He subsequently worked for two consultancy companies (in South Africa with Johannesburg-based SRK, and in the UK with Maidenhead-based Golder Associates). Dr Hinde joined the editorial staff of Mining Journal in 1984, leaving 30 months later to join the stockbroking subsidiary of Schroder Merchant Bank as a mining analyst. He rejoined Mining Journal at the end of 1987, and was subsequently appointed a director of the publishing company.

Workshop B

14:00 – 17:30

Aspects in the valuation of mining and petroleum companies

With commodities moving once again into the focus of mainstream investors, the valuation of mining and petroleum companies remain enigmatic to many generalists. This workshop provides an overview of valuation techniques in the natural resources industry. The workshop includes the following aspects:

• Definition and quantification of “resources” and “reserves”
• How resources and reserves impact the valuation of mining and petroleum companies
• Cash is king. What affects the cash flow of resources companies?
• Explorers vs. Producers. How the life cycle of a resources company affects the risk/reward profile in a portfolio
• Value drivers across the petroleum value chain
• Comparing the pros and cons of various valuation techniques

Investors who want to obtain a working knowledge about various valuation techniques in the resources sector should attend this interactive workshop.

Agenda:

14:00 Presentation on commodities and reserve replacement

14:45 Valuation methodologies in mining and oil exploration         

• DCF analysis, price/cash flow analysis, reserve/resources per ounce for exploration companies
• Emphasising advantages and disadvantages

15:45 Coffee break

16:00 Case studies ERIG’s approach – technical valuation methods

• How ERIG use the resource/reserve transfer “box” in their DCF models
• Geological examples

About your workshop leaders:

Joachim Berlenbach, Director, Earth Resource Investment Group

Based in Zug Switzerland, Dr Joachim Berlenbach is an analyst and advisor for the Earth Exploration Fund UI. In addition he is co-advisor for the Earth Energy Fund UI and Earth Gold Fund UI. He is a geologist by training and worked for 11 years in the South African gold mining industry prior to completion of 10 years experience in portfolio management and company analysis. Before launching the ERIG funds with Universal-Investment, one Germany’s largest investment companies with more than €105 billion in funds under administration, he worked for Citibank (SSSB) and was rated best South African gold analyst (2001, 2002) and best global gold analyst by Merrill Lynch (2002). He has been in fund management and consulting since 2003. During his previous employments he has developed a substantial network in the South African and European mining and investment industries. 

Willem de Meyer, Director, Earth Resource Investment Group

Based in Cape Town South African, Willem de Meyer is a petroleum exploration and production professional, with a background in geophysics and petroleum economics and more than 25 years experience working in the E&P business. He is presently analyst and advisor to the Earth Energy Fund UI. Before joining ERIG, he was Vice President of PetroSA, the state owned National Oil Company of South Africa which operates oil production and gas production offshore South Africa as well as a GTL plant, 35,000 bbl/d crude equivalent, from 1993 to 2008 it was the largest in the world. In 2006, Willem was awarded “Distinguished Contribution to the African Industry” at the Africa Upstream Conference, the largest conference of its kind on the continent.

Jordaan Fouche, Founding Member, Fund Manager and Investment Analyst, Earth Resource Investment Group   

Based in Cape Town, South Africa, Jordaan is analyst for the Earth Energy Fund UI and advisor for the Earth Exploration Fund UI. He is a geologist and geophysicist by training and has 20 years experience in the international oil industry including management of exploration and production portfolios together with various joint ventures throughout the value chain. This enabled him to develop a large industry network in Africa, Europe, and the USA.  He is a founding member of the ERIG group and has 4 years experience in investment analysis and portfolio management with the Group.