'Dennis Buchananâ (TM)s text clearly shows how an understanding of the
complementary disciplines of geoscience, conventional engineering and
advanced financial engineering is essential to making the right
decisions concerning how to appraise a resource or project and how to
structure the funding of natural resources assets in order to mitigate
technical and financial risk and to maximise value for owners.
Crucially, the book also looks at how other sources of capital, such as
limited recourse lenders, appraise metals and energy assets. Such an
understanding is essential to optimising the capital structure and
valuation of natural resources assets ... The advanced methodologies
revealed in Dennis Buchananâ (TM)s book will have great value to those
working in the technical and financial functions, or to those spanning
both functions, of the natural resources industry. 'Mineral
EconomicsGiven the design component it involves, financial engineering
should be considered equal to conventional engineering. By adopting this
complementary approach, financial models can be used to identify how and
why timing is critical in optimizing return on investment and to
demonstrate how financial engineering can enhance returns to investors.
Metals and Energy Finance capitalizes on this approach, and identifies
and examines the investment opportunities offered across the extractive
industry's cycle, from exploration through evaluation, pre-production
development, development and production. The textbook also addresses the
similarities of a range of natural resource projects, whether minerals
or petroleum, while at the same time identifying their key
differences.This new edition has been comprehensively revised with a new
chapter on Quantitative Finance and three additional case studies.
Contemporary themes in the revised edition include the current focus on
the transition from open pit to underground mining as well as the role
of real option valuations applied to marginal projects that may have
value in the future.This innovative textbook is clear and concise in its
approach. Both authors have extensive experience within the academic
environment at a senior level as well as track records of hands-on
participation in projects within the natural resources and financial
services sectors. Metals and Energy Finance will be invaluable to both
professionals and graduate students working in the field of mineral and
petroleum business management.
