The Capital Cost Estimate is a critical document in any proposed mining project and a key driver in the decision to proceed through the stage-gating process and gain an executive decision. The proponents will learn how estimate accuracy reflects the project development as the project moves from the study phases to the implementation phases. The importance of the Feasibility Study Estimate and the Engineers Cost Estimate in budgeting and controlling costs going forward are emphasised. The context of the Capital Cost Estimate (CCE) with respect to the Operational Cost Estimate (OPEX) and Closure Estimate (POPEX) in the mine life cycle will be reviewed.
Proponents will learn the importance of developing a flexible Work Breakdown Structure and the significance of the Category, Area, Package, Trade summaries. To develop a Capital Cost Estimate, ideally proponents will develop a Basis of Estimate document identifying the trade breakdown, direct costs, overhead costs, and contingencies. To ensure a successful project the Capital Cost Estimate should be prepared by suitably qualified staff with the correct accuracy and contingency. A major focus of discussion will be accuracy level, contingency and risk and means by which the Capital Cost Estimate may form the basis of a Monte Carlo risk assessment.
The development of the Capital Cost Estimate will form the basis of the cost evaluations and the trade-off studies to optimize costs. By the end of the course, participants will be able to analyze capital cost estimates (CAPEX), to understand the major cost drivers, cost uncertainties and risks.
At the end of the Programme, participants will be able to:-
- Identify critical aspects to be taken into account in CAPEX estimate for feasibility studies and project assessment
- Analyze capital expenditure estimates (CAPEX),
- Develop from the scratch Estimates of Initial Outlay, Undiscounted Cash flows and discounted cash flow models.
This program is designed fo managers, financial analysts, government officials, auditors, investors, regulators, engineers, project managers, environmental managers, supply chain managers, engineers, accountants, supply chain managers, investor relations managers, auditors, and NGOs, and consulting firms.