Metals and Energy Finance

While the intrinsic value of a mineral project is still a key consideration, understanding the interrelationship between technical and financial risk to truly comprehend the long-term value of an asset helps companies make better investment (or divestment) decisions. Companies that can secure debt finance for both the development and acquisition of advanced projects have greater strategic flexibility. Understanding how debt impacts the valuation of projects allows for an objective approach to determining levels of gearing; this is relevant to both the investment banking and mining communities and is the core narrative in this book.This revised edition retains sections on both conventional and financial engineering treated in a quantitative manner with fresh case studies. New sections address softer issues around environmental impact and social licence from a qualitative perspective, albeit acknowledging that without these approvals a mining licence will not be issued. The book also develops a completely fresh thread around the energy transition, recognising the drivers behind the decarbonisation of natural resource industries and the role played by oil and gas companies in developing renewable energy.