Monthly Lunch Seminars: Thursday October 8 , 2015 – Ramada Inn – Okanagan East Room
The Calgary Mineral Exploration Group Society offers monthly lunchtime seminars relating to geology and mining in the province of Alberta, across Canada and around the world.
$20.00 for members
$25.00 for non-members
Ramada Hotel Downtown
708 – 8th Avenue SW.
The MEG’s popular Monthly Speakers Program featuring a Beer and Sandwich Luncheon continues for 2015.
Thursday October 8, 2015 – MEG Luncheon features:
*Project Evaluation and Due Diligence an Investment Perspective
by Keith McCandlish, P.Geol., Managing Director, DMT Geosciences Ltd., Calgary, AB
Welcome to preference theory and certainty equivalence.
This presentation describes some issues surrounding due diligence required of investment decisions for resource projects, whether the due diligence is conducted by individuals or by companies trying to decide upon a best use of their funds.
The presentation discusses the stages or levels of due diligence, from the “smell test” to the highly detailed technical review. An important primary consideration is the risk profile of the investor. How should this affect the analysis?
Cash-flow modelling is frequently used to try to determine the value of a potential investment, but a cash flow model is only a useful tool if the inputs are correct and the critical components are properly derived. Few people understand how to build up a discount rate, and as a result most rates used are too low.
The presentation also includes a discussion of other analytical methods; sensitivity analysis, probabilistic methods, Monte Carlo simulation and option methods. Reserves, whether undeveloped and under consideration for acquisition or under consideration for extraction, can be treated as a call option on the commodity price.
The importance of auditing your due diligence assumptions to ensure that your analytical process is valid is discussed.
Keith McCandlish is a graduate of Cape Breton University, Sydney, Nova Scotia and the University of Calgary, Calgary, Alberta, 1976-1980. He is a registered P.Geol. with the APEGA, APEGBC and NAPEG.
Keith has over thirty years of geological and engineering experience in minerals, oil sands/heavy oil, precious stones, coal and industrial minerals. In 2006 he took over as Vice President and General Manager of a newly formed Company, Associated Geosciences Ltd. (AGL) focussing on corporate finance, technical audits, mineral project evaluation and mining fraud investigations. In 2008 AGL was purchased by DMT GmbH Co. KG and Keith was appointed Managing Director. In February 2011 he was appointed to the Board of DMT Consulting Limited of the UK as a non-Executive Director. Later, AGL was renamed as DMT Geosciences Ltd. in October, 2012.
Keith has extensive experience in the securities regulatory framework, corporate governance and capital markets advisory services, acting as an independent mining and oil & gas analyst for the TSX and TSX-Venture Exchange (and its’ predecessors the ASE and CDNX). As well, he is involved with the Canadian Securities Administrators as an advisor on petroleum related issues and was a long-term member of the Mining Technical Advisory & Monitoring Committee.
He was appointed to the Alberta Securities Commission’s Petroleum Advisory Committee in April of 2009. He is an APEGA Discipline Committee Member. He has acted as a Director of a major American mining company Appointed by the shareholders in a workout capacity through the bankruptcy of the parent corporation.
Keith has wide operational experience in coal, gold, iron ore, nickel laterite, copper-gold and tin porphyry etc. around the globe.
He is a specialist expertise in high Arctic exploration for Canada and Europe.
Please confirm your intention to attend by email to email@example.com so that the appropriate number of sandwiches can be ordered.
If you would like to present a lunch time talk to a keen audience of 50 or 60 professionals, please contact Glen Jones at: firstname.lastname@example.org or
telephone Glen Jones: 403-202-8683; Mobile: 403-651-3086 to submit your topic and abstract for review. If you or your company would like to sponsor a meeting please contact Glen Jones for further information.
The MEG would like to thank our generous sponsors:
Loring Laboratories Ltd.
Fairmont Resources Inc.
Micat Resources Ltd.
White Rabbit Resources
(Madelaine & Jack Krusche)
MD&A | Creative
If you would like to become a sponsor please contact an Executive Member for further information