Resources Industry Investment Analysis (ECFS902)

This unit considers valuation issues that are unique to the minerals and energy industries. This unit is structured around the value chain from exploration through extraction and to the market, and the methods by which resource companies seek to create shareholder value at all of these stages. This unit intends to address two aims. The first is to understand investment decisions that an analyst within a resource company may face; the second is to understand the financial information that resource companies release to the market so that we may compare the performance of resource stocks.

Learning Outcomes

  1. Understand the resource industry value chain and explain how shareholder value may be created at each stage.
  2. Identify and explain relevant resource industry investment factors, how these factors may be assessed and related risks mitigated.
  3. Understand, apply and interpret valuation methods relevant to the resource industry, including their appropriate applications and limitations.
  4. Apply financial statement analysis techniques unique to the resource industry to evaluate financial performance.
  5. Explain the fiscal regimes applicable to the resource industry, current related issues and debate.
  6. Conduct independent research, analyse and evaluate the performance of specific resource companies’ and compare performance of stocks.

Topics:

  1. Overview of the resources industry
  2. Exploration, reserves and resources
  3. Valuation approaches
  4. Commodity markets
  5. Fiscal regimes: resource rants, taxes & royalties
  6. Interpreting resources stock financial statements
  7. Resource stock valuation

Prerequisite units:

Lecturer:

James Hay

Unit guide:

Resources Industry Investment Analysis - The link will provide a list of guides for this unit. If the desired term/location is not listed, please view the latest one available.

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