Technical PROGRAM www.smeannualconference.com #societyformining SME 2017 ANNUAL MONDAY, FEBRUARY 20 The Role of the Independent AFTERNOON Engineer in Project Finance CONFERENCE & EXPO Richard Lambert, P.E., P.Eng., Principal Mining 1:30 pm Room 113 Engineer, Executive Vice President and TECHNICAL Chief Operating Officer, RPA Mr. Lambert will cover the assessment of technical and Dreyer Lecture economic risk and lender’s tolerance for risk. PROGRAM Lecturer: Ron Parratt Integrated Business Planning – An Enabler for Raising Capital Ajay Kumar, Manager, KPMG LLP MONDAY, FEBRUARY 20 Integrated Business Planning (IBP) helps achieve ex- tended visibility, aligned planning and analytic capabil- AFTERNOON ities to make proactive tradeoff decisions generating improvements across revenue, cost, assets, risk and 2 pm – 5:00 pm Room 210 predictability. IBP delivers cross-functional alignment of strategic, operational and financial processes to create value in asset-intensive industries. The author will share Accessing Capital in the operating model, organizational challenges, and best Mining Today: Managing practices from a recent global mining client experience. Through the Cycle Chair: T. Alch, Executive Director of What Financial Options and Strategies New York Section of SME and Managing for Companies in Varying Stages of Distress Are Available Today? What to Do First, Partner of TAA Advisory, LLC. As Soon As Possible Keith McGregor, Partner, Corporate Restructuring Join our experts who will speak about key issues and Practice, Ernst & Young LLP latest trends and answer your questions about raising capital in mining today. It is a challenging environment; as metals’ prices go down and up, so do investors’ An Attorney’s View of Key Legal and and lenders’ interest and valuations. If you are in the Financial Issues Mining and Exploration exploration and mining business, an investor or owner, Companies Should Be Mindful of When you will want to hear our speakers discuss: What can Seeking to Raise Capital Today you do to help raise capital? Is the capital available Cynthia Urda Kassis, Partner, Shearman & Sterling LLP suitable? How do technical, non-technical, legal, and societal issues and risks impact raising capital? What should you know about debt, equity, or other sources of Non-Technical Considerations in the Due capital such as private equity, hedge funds, royalty, and Diligence Process of Mining Transactions streaming companies? If in distress, what can you do? Robert Livermore, CEM, Principal Ramboll-Environ Is M&A, consolidation and or restructuring the best op- tion? Join us to hear our Speakers discuss these issues “Due diligence” is the review of a facility or business to and latest trends, and get your questions answered. assess and quantify risks and operating status before an acquisition. Due diligence findings can be used to Following are the biographies of the organizer and negotiate the price, general terms, and indemnification speakers, in the same order as the agenda. provisions in the purchase and sales agreement. In addition to assessing outstanding liabilities, necessary capital improvements, and the adequacy of operating Introduction by Panel Chair: budgets, due diligence should include “nontechnical” Tim Alch, Executive Director of NY SME and Managing considerations, such as local community acceptance Partner of TAA Advisory, LLC and relations, and the effect on the company’s public image, operations and post-closure strategies. This pa- per will discuss how these considerations can be ad- A Banker’s Perspective of dressed in the due diligence process and factored into Funding Mining Projects the transaction. Alain Halimi, Head, Metals & Mining, Americas at Commonwealth Bank of Australia Due diligence is performed on business and facility acquisitions to verify the sellers’ claims, usually before Mr. Halimi will discuss trends about funding of mining finalizing the purchase and sales agreement. Current projects, key bankability issues when lending; impact of due diligence practices have been expanded to in- and importance of confidence levels of geologic, feasi- clude a number of the many other aspects inherent in bility studies; the quality of deposits and arrangement the growing complexity of modern business. Because between off-takers and miners; whether hedging is of the potentially significant costs now associated with advisable; factors that influence the level of equity and environmental matters, environmental due diligence debt in structuring a mining company; and how to figure has become an integral part of most companies’ due unknowns in to financing structures. 2 SME | TECHNICAL PROGRAM DENVER COLORADO | FEBRUARY 19-22, 2017 diligence efforts and is almost universally demanded ant changes is that funding for public institutions has 3:05 pm by lenders and investors. Environmental due diligence, shifted from primarily state-funded to revenues driven Navigating the Waters of Tenure then, can be defined as a review or audit of a facility or from tuition, research and philanthropic sources. As a and Promotion a business unit that assesses and quantifies inherent result, the expectations for promotion and tenure have V. Kecojevic; Mining Engineering, risks and other intangible risks that may cause delays shifted to require the development of a sustainable and West Virginia University, Morgantown, WV or project execution prior to and post-acquisition. Given impactful research program while providing exception- today’s changing regulatory and litigious atmosphere, al teaching performances and dedicated service to the Teaching, research, and service to the university, soci- environmental due diligence is a major factor for poten- university and profession. The presentation will dis- ety and profession constitute the heart of the mission of tial buyers of mines and mineral processing facilities. cuss, in general terms, the lessons learned from pro- land-grant universities. Therefore, for an award of tenure Environmental due diligence encompasses both tech- motion and tenure cases involving mining engineering and promotion, tenure-track faculty undergo a particu- nical and nontechnical aspects and, in today’s society and mining-related faculty. larly rigorous evaluation involving an assessment of ac- and business atmosphere, both are equally important. cumulated and demonstrated accomplishments in these This paper will discuss the Non-technical aspects of areas and the likelihood that the faculty member’s level the due diligence process and the relevance of under- 2:25 pm of performance will be maintained in the future. The standing these risks and implication during and after a Strategies to Earn Promotion and Tenure objective of this presentation is to guide tenure-track transaction. M. Moats; Materials Science and Engineering, faculty members in mining engineering in navigating the Missouri University of Science and Technology, Rolla, MO waters of tenure and promotion, i.e., enhance an under- standing of the promotion and tenure process; a nature A Mining Executive’s View of Raising Most departmental promotion, retention and tenure of competitive academic environment, and academic Capital in Mining Today, Including Raising guidelines use nebulus terms such as satisfactory requirements related to teaching, research and service. Debt, Equity, Hybrids, and Managing and exceptional. They provide broad guidelines for This presentation is based primarily upon the author’s Relations With Investment Bankers and scholarly activity, teaching, service and reputation. But experience going through the rigorous promotion and what do they really mean? This presentation will dis- tenure process at two strong research-based land-grant Shareholder Communications cuss how one can determine what your department universities, chairing the promotion and tenure commit- Mark A. Smith, PE, Esq. President and CEO, and university is really looking for and how to turn that tees, reviewing dozens of promotion and tenure files at Largo Resources information into self-imposed quantifiable goals. Once both national and international levels, and mentoring goals are established then progress can be evaluated tenure-track faculty members in mining engineering. and specific objectives modified depending on your An Independent Advisor’s View of Raising career development. The end result should be a well Capital for Mining Ventures Today rounded promotion dosier, which is well received by 3:25 pm Richard Reeves, Managing Director, your department and university. RGR Advisory Services Promotion and Tenure from the Assistant Professor Point of View N. Ripepi; Mining Engineering, Virginia Polytechnic 2:45 pm Institute and State University Creating Successful Promotion Blacksburg, VA and Tenure Dossiers M. Poulton; Lowell Institute for Mineral Resources, Funding: PI; Co-PI; Career Award; and % Cred- MONDAY, FEBRUARY 20 University of Arizona, Tucson, AZ it. Funding Sources: DOE; NIOSH; NSF; and EPA. Publications: Journal; Reviewed Conference AFTERNOON The concept of tenure in academia dates to the year Proceeding; Abstract Reviewed Conference Proceed- 1158 under the Holy Roman Emperor Frederick Bar- ing; Not-reviewed; Poster; Submitted; Under review; In 2 pm Room 507 barossa. In the US, Harvard College introduced tenure Press; Accepted with minor revisions; Major revisions!; in the early 1800s to prohibit donors or the clergy from 1st author; Corresponding author; 2nd author; Last au- removing faculty members with unpopular views. Tenure thor;