Identifying the Major Causes of the Civil War Essay Example for Free

Identifying the Major Causes of the Civil War Essay The civil war happened between the years 1861 and 1865 when the history of the United States was still very young. It was a very costly war, leading to over 600000 casualties. Its origin can be traced to a number of causes, which I identify in this essay. First of all, there were tension between the North and the South due to economic and social differences (Catton, 1988). The economy of the south depended mainly on plantation agriculture, growing commercial cotton using slave labor. The north was industry-oriented, and this meant that two groups of people had to learn to live together. Secondly, there were ideological differences as some people were against according of greater rights for the state while others felt that more authority needed to be vested on the federal government (Catton, 1988). Many felt that the US constitution had given the state very few rights, and this led to conflicts. Third, there was continuous animosity between those who supported the use of slave labor and those opposed to slavery. These conflicts eventually spilled over to the Senate, and these tensions contributed to the outbreak of war. Growth of the abolition movement was another leading cause of the Civil War. The North generally opposed slavery while the South depended on it. African American slaves in the south started moving to the North where their rights were more recognized, and sympathizers there harbored them (Catton, 1988). This caused animosity between northern and southern states. Finally, the election of Abraham Lincoln, who was a supporter of the Abolitionist Movement, caused South Carolina to issue a declaration of secession Mississippi, Florida, Alabama, Georgia Louisiana and Texas soon followed suit, and action had to be taken to preserve the union (Catton, 1988).

The Construction Of A House Or Buildings Construction Essay

The Construction Of A House Or Buildings Construction Essay In this modern world an builders faces lots of challenges in the construction of a house or buildings to compete the world in the form that how to make a modern house or building which is environment friendly, energy saving and low cost etc, such sort of problems putting pressure on builders now a days. Because of the rising cost of the material which is used in traditional construction methods which are unlikely to meet the demands for future developments. Thats why more and more builders or designer are now understand the benefits of the development of modern material which are gradually used in the buildings now a days. Housing associations are now encouraging the housing corporation to use the modern ways of construction known as modern methods of construction when building new developments. This policy is a direct result of the Governments response to a number of drivers that have resulted in what it perceives to be a crisis in housing supply. In areas of growth, house construction in the private sector has tended to focus on the production of traditional houses either semi-separate family homes or larger separate executive homes. These private sector dwellings are beyond the reach of most first time buyers, particularly key-workers in comparatively low-paid jobs in the public sector. The Government is looking to housing associations to give dwellings for those who cant afford to buy the house. The Housing Corporation is the key agency regulating The Housing Corporation is the key agency regulating delivery of housing in the social housing sector. They assist with delivery of policy via grants awarded through the Approved Development Programme (ADP). A proportion of the ADP has been ring-fenced (The Challenge Fund) for the delivery of new homes quickly and cost effectively, in areas of high demand as well as stimulating a step change in supply by encouraging innovative forms of construction. In the face of the support from political and regulatory authorities to make greater use of modern methods, lots of stakeholders are still unsure about modern methods of construction for some of reasons. In the case of housing associations there is doubt about whether or not modern methods are able to deliver energy efficient homes at good reasonable prices. This pamphlet aims to demonstrate that homes that cross the requirements of building regulations in sense of their material efficiency can be built cost-effectively. SIPS Structural insulated composite panels are one of the most satisfying technologies in the construction industry. Started in the years of 1940s when the new sandwich design concept was generated, where there were two wooden materials and a different element between them generating maximum strength to the structure. Design As mentioned earlier, the SIP has an insulated structure between two wooden boards. This most commonly used materials are expanded polystyrene (EPS), extruded polystyrene (XPS) or rigid polyurethane foam. Figure : STRUCTURAL INSULATED COMPOSITE PANELS Figure : STRUCTURAL INSULATED PANELSOther materials can also be used for example, steel, aluminium, stainless steel, fibre-reinforced plastic, and magnesium oxide.http://www.wbs-ltd.co.uk/images/photos/newbuild_mmc_sips1a.gif Advantages the structure is more Tougher and stronger due to the sandwich pattern of the material More insulated than any of the materials Less operating cost and can be used almost everywhere for eg. Roof, floor, walls etc. Drawbacks The manufacturing and the production can take some time Expensive manufacturing cost Have to prevent the composite from moister and keep it ventilated The material creeps over time Figure : VOLUMETRIC CONSTRUCTIONVOLUMETRIC CONSTRUCTIONhttp://www.scrapbookscrapbook.com/DAC-ART/images/hoodsinside.jpg The volumetric construction is also, known as the modular construction. This kind of construction is mostly used at places where the employer cannot afford waste time and material for e.g. a busy road, a hospital etc. Design The construction components are manufactured and processed and are stacked onto prepared foundations to form dwelling. The materials used to make the components include light gauge steel frame, timber frame, concrete and composites. Advantages Saves time and also the labour cost. Can reduce the waste significantly generated during construction and also comparatively the least amongst other construction methods It is the most efficient when using identical units as it is the same common production line used. Improved quality compared to the other construction methods Disadvantages Setting up a manufacturing and production line could be a major concern issue when considering cost Transporting could be expensive depending upon the size of components Also, installations and other factors would affect the construction workers if the components are heavy or complex structure and have to be perfectly installed STEEL FRAME CONSTRUCTION The steel frame construction is usually used for constructing bigger structures like building, sky scrapers etc due to its durability and toughness. The SFC is one of the most efficient construction methods which use steel beams, T shaped and I shaped beams as to resist the stresses. Design Figure : STEEL FRAME CONSTRUCTIONOakridge, a development of 299 dwellings for Sentinel Housing Group, utilised light gauge steel frame panellised construction for the first two phases. The homes, constructed from steel frames manufactured by Ayrshire Steel Framing, share standardised layouts visual variety was achieved externally by incorporating a variety of physical features (such as bays, dormers and balconies) along with a variety of finishes (different coloured renders, brick and timber cladding). Dormers and balconies were also prefabricated in glass reinforced plastic (GRP).http://www.airport-technology.com/projects/raleighdurham/images/7-frame-construction.jpg 2. Advantages of Steel Frame Construction: They can build very high and large They are light weight and strong They are easy to fix or assemble They are accurate and predictable 3. Disadvantages of Steel Frame Construction: Steel is an expensive material Frames are unstable These types of frames needs fire protection They needs separate skin TIMBER FRAME CONSTRUCTION Figure : TIMBER FRAME CONSTRUCTIONTimber frame is a modern method of construction that offers an important high-quality solution to the many housing and construction challenges facing the UK.As one of the leading modern methods of construction, timber frame has grown consistently year on year. Its regarded as a means of achieving good quality, reducing time spent on-site, increasing safety and overcoming skills shortages in the industry, and will play a very important role in the formation of homes in sustainable communities by 2016.http://www.lizmale.co.uk/uploadFiles/mciFiles/Timber_frame_construction1.jpg Design Wood is the only renewable commercial building material and as a way of construction is effectively carbon neutral. When you use timber frame youre actively helping to reduce the belongings of global warming. Further improved by its low embodied energy and excellent insulation properties, it means happy customers with lower heating bills and a good future for the planet. Advantages of Timber Frame Construction In timber frame construction needs small amount of labour. It can be seen that the benefit in terms of time saving on site manifests itself as a saving in construction risk. Timber frame construction is environment friendly but the environmental benefits of timber frame construction are reduced when timber is imported from sources outside non local and requiring substantial fuel consumption in transportation. Disadvantages of Timber Frame Construction Apparently problems with timber frame construction in the housing industry from each end users and local establishment would include a perceived huge risk of fire, problem of sound lessening in a timber structure and the impact such a structure might have on the security of the end user. Basingstoke timber frame construction site fire Figure : CONSTRUCTION FIRE Timber frames are designed and manufactured to tight tolerance and require correct setting and other adjacent construction such as chimneys, rising walls and block construction. As a result, these works need to be set out with a good degree of accuracy. Panels should be stacked on a flat surface so that warping or buckling does not happen. Proper on-site practices and skill of deliveries can address this matter. Where housing is proposed in areas at threat of flooding, the planned construction methods undertaken need to be reviewed in order to measure the possible risks or implications should flooding occur. BRICK and MORTAR CONSTRUCTION Figure : BRICK AND MORTAR CONSTRUCTIONBrick is a timeless, classic building material. The Chinese, and Egyptians understood the value of this simplest of rectangular solids over three thousand years ago. Brick structures still stand that were already ancient at the time of Christ. Invented in antiquity, brick remains the one exterior building material with a human scale, rich variegated colours, and flexibility of use. Modern man has crafted building materials from concrete, plastic, glass and steel, but none approach this unique elementary product. http://www.chemexfranchises.co.uk/anglesey/images/construction.jpg Design The brick making process is unchanged from primitive times in its necessary elements. A modern brick plant carries out the same functions that a Babylonian craftsman once performed. That craftsman mortar and sand, mixed the two with water to form a flexible clay mass or clot, formed the clot in a wooden mould, dried the green, unfired brick in the sun, baked it to nearly 2000 degrees, and cooled the now permanent brick, which then went to the mason to be laid in mortar to become part of a temple, Great Wall, or simple home. Figure : BRICK AND MORTAR CONSTRUCTIONAdvantages of Brick and Mortar constructionhttp://www.bandwbuilders.co.uk/ImageHandler.ashx?UploadedFile=trueimage=~/App_Data/UserImages/Image/11125%20100910%20001.jpg The bricks walls protects the houses from noises thats comes from outside. Bricks are beautiful when we go to the residential area we can compare the beauty of brick structure to the other structural work like steel, wood etc. Brick structures are easy to maintain and there is nearly no cost to maintain the exterior of an all brick home. Bricks will not burn and in those disastrous situations where a fire does occur it will certainly not fuel the situation. Disadvantages of Brick and MORTOAR CONSTRUCTION The one main disadvantage of bricks and mortar is the high cost of both material and labour. Bricks and mortar construction is much sturdier than wooden homes because of the thickness, hardness and weight of the materials used to build the home bricks and mortar construction is very old traditional construction. ANALYSES AND EVALUATION For the particular construction, the author supposes that the steel frame construction would be the best possible way to build the structure. As the main concern is time efficiency it would be quicker and easier to install the steel frame structure and to complete the work on time. Talking in terms of cost efficiency and reliability, in the steel frame structure has to be compromised in one of the two factors. The demand of this kind of structure is to be tough and reliable and therefore have to spend some money on the manufacturing of the steel frames and also keeping the quality into consideration. The manufacturing cost and the transportation cost would be the only concern issues for the company where as the labour cost would be comparatively less. As the steel frames could be easily assembled and fixed. Architecting on the building would be easier and also it would give a freedom to the architect to design his particular construction as the steel frame could be manufactures in almost any possible way. Method Cost Time efficiency Structural reliability Environmental friendly sustainability SIP Expensive manufacturing cost and nominal labour cost Moderate Good Moderate Best Volumetric construction Expensive manufacturing and labour cost Good Moderate Moderate Less Timber frame construction Nominal cost Less Moderate Less Good Brick and Mortar construction Least amongst all the methods Least Good Less Less Steel Frame Construction Expensive manufacturing cost but cheap labour cost Best Best Best Good SCHEDULING AND PROCEDURES Designing The plan starts by taking the structure into consideration. Keeping the limitations, constrains and the difficulties in mind. The Architecting Part takes place after the cost estimation and the legislations have been considered. The designing process is a time taking process as it helps in knowing all most everything which is to be used in the construction and the quantity of materials which have to be ordered or manufactured. Foundation The execution starts by evacuating the area and excavating to make a foundation for the building. The foundations build is made up of cement, which is a common process for all the construction. During the initial construction, the skeleton of the structure is build by the steel frame construction method. The steel frame construction helps in giving the toughness to the structure and also, the freedom to building almost any kind of structural shape. The concern issues for steel frame structure are as follows: Time delay in manufacturing and transportation Waste parts could affect the expected budget Construction The method suitable with the steel frame structure is the SIPS. The Structural insulated panels can be used in making roofs, floor and also the walls. The reliability and the strength of the combination of the structures would improve the life and the toughness of the building. Concern issues for this kind of construction method are: Weather: it could be a serious issue and could delay the work plan, therefore the construction plan has to be well organised and executed. Labour cost : these kind of construction methods have nominal labour cost but since it is a combination of two types of construction methods, the labour demand could be higher Lastly, legislation: the legislations are the most important factor of concern for the employer and as well as the management. Finishing The finishing consists of the final construction steps like greasing, oiling, painting etc. REFERENCE Figure 1: modern method of construction ; http://www.tommypopeconstruction.com/Building-Construction.htm Date: 3rd may 2011 time: 4:00pm Figure 2 : Modern building; Shift Housing by AquiliAlberg Date: 3rd may 2011 time: 4:20 Figure 3 : http://www.thermalconstruction.co.uk/about-us-1 DATE: 9th may 2011 11:41 Figure 4 : SIPS http://www.wbs-ltd.co.uk/newbuild_mmc_sips.htm Date: 9th may 2011 12:00 Figure 5: VOLUMETRIC CONSTRUCTION http://www.scrapbookscrapbook.com/DAC-ART/dac-artblocks.html Date: 10th may 2011 1:12pm Figure 6: STEEL FRAME CONSTRUCTION http://www.airport-technology.com/projects/raleighdurham/raleighdurham7.html Date: 10th may 2011 1:30pm Figure 7 : TIMBER FRAME CONSTRUCTION http://www.lizmale.co.uk/clients-case-studies/uktfa Date: 10th may 2011 1:35pm Figure 8: CONSTRUCTION FIRE http://faast.co.uk/2010/09/15/basingstoke-timber-frame-frame-fire-prompts-construction-fire-safety-warnings/ Date: 11th may 2011 2:00pm Figure 9 : BRICK AND MORTAR CONSTRUCTION http://www.chemexfranchises.co.uk/anglesey/construction.html Date: 11th may 2011 2:10pm Figure : BRICK AND MORTAR CONSTRUCTION http://www.bandwbuilders.co.uk/blog Date: 11th may 2011 4:00

Financial Analysis for Mining Project

Financial Analysis for Mining Project Definition of Project Finance Financial institutions use a particular type of lending known as project finance when funding a developing mining project. The loan is repaid from the cash flows generated by the project with no recourse, or only limited recourse, to the company as a whole. In non-recourse lending, no tangible assets exist until the operation is brought into production. Clearly the lender will be exposed to all the risks associated with the project which could result in revenue being insufficient to service debt. Banks will thus always take a conservative stance when evaluating the economic viability of a project and may look to the project sponsor to provide corporate guarantees for the loan. If the sponsor is a junior company with little or no collateral, the role of government-backed guarantees becomes important. Project finance is not readily available to junior companies with proven deposits but no operating production. These companies may instead generate funds from the equity market to bring the project to the stage of being a viable operation. Once steady cash flows have been established, debt finance then becomes both possible and attractive and is used to develop the project to its optimum potential. Project finance is also used to develop a particular component of well established operations, such as new mining equipment, the rehabilitation of old or the sinking of new shaft systems, or upgrading of a treatment plant. Why Project Finance? Mining projects are capital-intensive ventures with an inherently high risk, and as such are often not deemed sufficiently creditworthy to obtain traditional financing. The project sponsors may be unwilling to carry the risks and assume the debt obligations associated with traditional financing even if it is available. Project finance is an attractive alternative as it allows the risks associated with the project to be shared with the principal lender. The main advantage of non-recourse funding is that the sponsor has no obligation to service the debt if cash flows generated through mining operations are insufficient to cover the principal and interest payments on the loan. The lender has the security of a collateral guarantee from the sponsor and an economic completion test (ECT) if a project is being developed from the feasibility stage. An ECT acts as a safeguard for the lender against any flaws in the feasibility study encountered during the construction phase and over the start-up period of the project. Once the project has passed the ECT then the guarantee falls away, and the only asset the bank can claim is the actual cash flow itself. Sponsors typically seek to finance the development and construction costs of a mining project on a highly geared basis, often around 60% to 70% debt. Such financing permits the sponsor to put fewer funds at risk and develop the project without diluting its equity investment in the venture. Project finance can also lead to reductions in the cost of capital, as lower cost, tax-deductible interest is used rather than higher cost, taxable returns on equity. Financing should be structured to maximise tax benefits and ensure that all available tax benefits are taken advantage of by the sponsor. Project Financing Participants Sponsor/Developer The sponsor or developer of a mining project is the organising body that controls and has an equity interest in the company or other entity that owns the project. In mining projects there is often more than one sponsor, and these will normally join together under a joint-venture agreement to form a single corporation/partnership that will essentially function as the project owner. A joint-venture agreement must be carefully drawn up with legal involvement and must clearly state the respective rights and responsibilities to the project of the parties involved. Lender The lender of project financing is a financial institution or group of financial institutions that provide the capital loan to the project company. Lenders are usually corporate investment banking groups, though NGO involvement in project finance is important in developing world countries. Due to the non-recourse nature of project finance, the lender takes a security interest in all of the project assets. Government If the sponsor is a junior company with little or no collateral, governments may be required to provide the lender with a guarantee on the loan. This practice is particularly common in the former Soviet Union region, where formerly state-owned projects now seeking to develop in the private sector are backed by national governments in their applications for project finance. An Introduction to Modelling Metal Project Finance February 1, 2010 Schedule to Project Finance The development of a project to the stage where project finance becomes viable involves going through the following stages: resource definition drilling of exploration target; preliminary feasibility study; further project development expenditure; full feasibility study; and information memorandum. Preliminary Feasibility Study Once an economic mineral resource has been identified by an exploration group, a preliminary feasibility study is undertaken by a small group of experienced professionals to determine if further expenditure on the project is justified. The foundation of the pre-feasibility study is the development of a geological model which forms the basis of the reserve estimation. Geostatistical techniques can then be applied to determine if the deposit has been correctly sampled and provide an indication of the uncertainty associated with the estimated grade. The whole integrity of a project will be called into question if the geostatisticians have to place any qualification on the reliability of the sampling programme. Once the geometric form and size of the deposit and the concentration of the mineral have been established, an initial design for the mine and mineral processing stages can be considered. It is particularly important that the rate of production should be on a scale which is appropriate to the size of the ore body. A mine life much in excess of 10 years does not enhance the net present value (NPV) of the project, while too short a mine life does not permit adequate return on capital. A simple discounted cash flow analysis based on some broadly based engineering assumptions can then be set up, provided the reserve estimation is reliable. This will establish the overall financial viability of the project and allows a basic sensitivity analysis to be undertaken. Full Feasibility Study Most junior companies do not have the resources required to meet the high cost of generating all the data needed to undertake a full feasibility study and then fund the study itself. This phase of project development is often funded by bringing on board a major joint venture partner or by raising finance through share issues on the stock market. Essentially, the technical component of the prospectus for a market listing on one of the senior stock exchanges involves the preparation of a pre-feasibility study. Typically, a junior company with a proven deposit will attempt to establish a production capability once equity funding has been obtained. This will provide material for a full feasibility study. Before a mining project can proceed from the exploration and evaluation stage to full-scale production, all available data and relevant factors are compiled and evaluated as part of the full feasibility study. This should analyse every technical, financial and other aspects of the project. The major topics that are expected to be covered include: geology; grade and reserve estimation; mining method and plan; mineral processing design plan and test results; capital costs, taxation and royalty assumptions; operating cost estimates; product price assumptions and negotiated sales contracts; environmental considerations and operating permits; and financial modelling. Typically, a full feasibility study would involve a team of at least 10 professionals who could take up to a year to complete the task. It would be used as a blueprint when calling for tenders and awarding multi-million dollar contracts. Information Memorandum An information memorandum builds on the full feasibility study and results in the document required by the bank in any application for debt finance. While this document would incorporate a full technical feasibility study, a bank would also require background information on the borrower. This includes audited company accounts, a profile of the company structure and senior personnel, the legal framework of the company, the proposed loan terms and all the necessary information on exactly how the loan will be administered, controlled and protected. This material is all incorporated in the information memorandum. Sensitivity analysis would be undertaken on the financial model and key parameters such as operating costs and capital costs would be varied. Clearly much greater confidence will be placed on estimates provided by an experienced mining company than junior companies with no production experience. While junior companies can hire consultants to provide technical reports covering operating and capital costs acceptable to the lender, they will need to assemble an experienced management team. Getting a mine and processing plant to perform to their design capabilities is as much an art as a science. A proven track record is clearly an advantage. The information memorandum will also require an environmental audit to be carried out with specific reference to liability for previous mining activity. Superfund legislation in the US can hold lenders responsible for environmental damage at sites where loans have long since been repaid, or where degradation occurred before it was owned by the mining company to which the bank has provided debt finance. The Lenders Decision Making Process The lender will initially review the submitted information memorandum and it is then frequent practice to hire an independent consultant to perform a due-diligence test or prepare an independent feasibility study. Banks will construct their own financial models and carry out detailed sensitivity analyses. Potential risks must be identified and quantified prior to committing to a project. Given the number of independent and interdependent variables present in a mining operation, it is quite impossible to envisage all possible scenarios that could prevail during actual mining. Monte Carlo techniques are sometimes used to simulate some of the possibilities, but these assume the statistical independence of the parameters, which is clearly not valid. Once the project finance analysts have reviewed and accepted the information memorandum, their findings will be presented to a credit committee which is responsible for the ultimate accept/reject decision. The background information on the borrower and credit guarantees are particularly important at this stage. The Purpose of Modelling The size and complexity of a projects financing requires accurate financial analysis, and modelling plays a vital role in charting a projects cash flows. Both the lender and sponsor alike need to establish that future revenues will be of sufficient magnitude to meet loan repayments on schedule while still producing a residual profit for the sponsor. Discounted cash flow (DCF) modelling thus forms an integral part of the preliminary and full feasibility studies and allows the economic viability of a project with debt finance to be tested. Cash flow modelling should be undertaken throughout project development, with an increasing level of detail as more data becomes available. A preliminary feasibility should include a simple DCF model that allows the overall financial viability of the proposed operation to be established. By the time a project reaches full feasibility level, detailed engineering studies and market evaluations will have been undertaken and capital costs, operating costs, and predicted sales levels can be defined with confidence. A full feasibility cash flow model will thus be more refined and will incorporate tax and royalty formulae and full project financing scenarios. A detailed sensitivity analysis will also be included. In evaluating an information memorandum, the lender will scrutinise the cash flow model of the project and employ independent consultants to verify the cost assumptions used. The lender will perform a risk analysis on the model inputs and analyse the project financing component in order to determine the banks optimum lending scenario. DCF Analysis and the Time Value of Money The principle of discounting cash flows is based on the logic that money received in the future is worth less than that same amount received today, due to the opportunity of earning additional revenue on that sum if it were to be invested elsewhere. Suppose there is a choice of receiving $1000 today and investing it or receiving $2000 in ten years time. Which is the most valuable outcome? The answer clearly depends on the prevailing interest rate. If it happens to be 5%, the money would be worth $1629 at the end of ten years and so it would be better to wait. On the other hand, if the current rate happens to be 10% the sum would be worth $2594 in ten years time and so it would be preferable to take the money now and invest it. The break-even interest rate in this scenario is about 7.2%. Modelling incremental discounted cash flows analyses the financial viability of a project by not only testing that generated revenues are substantially greater than costs and debt service requirements, but also by measuring the present value of those profits. The underlying philosophy in DCF analysis is that the project is to be compared with investing the same stream of cash flows elsewhere. One of the essential questions in DCF analysis is how to choose the discount rate. Discounted cash flows can be used to determine the Net Present Value of the project, which is essentially a present valuation of the potential of the deposit to generate future profits. NPV is calculated as follows: Projects with an NPV greater than zero will produce greater revenues than their costs at the minimum acceptable rate of return (the discount or hurdle rate), and mutually exclusive investment opportunities are ranked by magnitude of NPV. The Internal Rate of Return (IRR) and Payback Period of a project can also be calculated from a model of future cash flows. IRR is essentially the discount rate at which NPV at time zero of all cash flows is equal to zero, and is calculated as follows: A project is profitable if the IRR exceeds the opportunity cost of capital (the projects discount rate), and mutually exclusive scenarios are ranked by magnitude of IRR. Payback period is simply the time taken for the initial capital investment to be recovered by the stream of annual positive cash flows, and is not generally used alone for making an investment decision as it takes no account of the time value of money. Developing a Spreadsheet-Based Model The most important elements to remember when developing a spreadsheet model of projected cash flows are clarity, consistency, and flexibility. The spreadsheets used in some projects can be very large and complicated, with entries going from page to page. Spreadsheet cells call for results from other cells which in their turn call other cells. It is not always easy to follow the logic of the steps being carried out and, when the spreadsheet is very convoluted, there is a real possibility of artefacts being introduced. Even if there are none, it becomes very difficult to test the projects sensitivity to input parameters. There is great benefit to be gained from a consistent basic layout with a clear flow of logic throughout. Input pages, calculations, and output reports should be kept in separate areas. This course has employed the use of IC-MinEval, a purpose-designed software package for the financial evaluation of mining projects. IC-MinEval automates all the stages required to produce an Excel-based DCF model of a mining project through a series of clearly defined menu-driven forms that prompt the user to enter all the necessary technical and financial variables. Once the key technical and financial data has been entered, it is checked and a comprehensive series of Visual Basic routines ensures that a set of Excel worksheets are generated to form a customised DCF model. The DCF method of analysis has the advantage that a model can be constructed which reflects the primary technical features of the project. This does, however, require a level of knowledge about the operation which may not be available outside the company, but it is still possible to develop a model based on comparative scenarios which can provide the basis for a preliminary valuation. This is the approach followed by IC-MinEval and adopted in this course. The first step in creating a spreadsheet cash flow model is to compile all available project information on an input sheet database. This includes all the technical information which will allow calculation of mine life, annual ROM production and annual production of saleable commodity. The input sheet must also contain project cost information to allow calculation of annual capital, operating, and transportation costs. Finally, financial data must be input, including sale price, tax and royalty rates, project discount rates, and project financing information. A separate series of worksheets can then be created to calculate the annual production, sales and costs. The results are then used to construct a model of the cash inflows and outflows in each year of the projects life. A mine life much in excess of 10 years does not enhance the NPV of the project, while too short a mine life does not permit adequate return on capital. A project with a very long potential lifespan should thus only be modelled over the first 10 to 15 years of its life. It is unlikely that a mine with a longer life could operate effectively without additional capitalisation and so the cash flow forecasts for the later years would be highly subjective in any case. Project Input Data The input data needed to construct a spreadsheet-based cash flow model is divided into project technical information and financial information. IC-MinEval has a series of input screens which prompt you for all the necessary data, navigated from an input menu screen (Figure 1). The basic technical inputs can be subdivided as follows: general project information; resource information; mining rates; costs; commodity price; expenditure; and environmental and closure provisions. General Information General information is required on the commodity/ies, and on the mining method that is to be used to exploit the resource. The choice of mining method has important implications for the rate of production, equipment, capital expenditure and mining operating costs. The permitting and construction period also needs to be established in order to determine the total pre-production period of the project, the time after the initial capital expenditure (capex) has been spent before production (and revenue) can begin. In terms of project finance, the end of this period signifies completion when the projects cash flows become the primary source of debt repayment. Resource Information Information is required on the size of the deposit, the grades, and several other mining parameters. The total mineralised volume of the deposit revealed by geostatistical evaluation can be multiplied by the specific gravity of the particular ore-type to calculate the total in situ ore reserve tonnage. The expected mining recovery (the percentage of the in situ ore that can be mined) provided by the engineering study is multiplied by the total in situ ore tonnage to determine the total ore to be recovered.The expected dilution (the amount of waste rock that is mistakenly mined as ore), stripping ratio (the amount of waste material needed to be removed for every unit of ore mined in surface operations), grade (average grade of ore mined that is higher than the economic cut-off) and plant recovery (the percentage of the commodity contained in the ore rock that can be extracted by the plant) are also required in order to establish the quantity of the saleable commodity produced. Mining Rate The mining rate needs to be established because it directly affects the mine life and capex, as the more rock mined per year, the larger the processing plant and equipment that is required. In addition to the average rate during full production, it must also be established if the mining rate is to be varied over the first few years of production, to model a more realistic slower start up rate. It is particularly important that the rate of production should be on a scale which is appropriate to the size of the ore body. A mine life much in excess of 10 years does not enhance the net present value of the project, while too short a mine life does not permit adequate return on capital. Costs The reliability of a cash flow model often hinges on the accurate determination of the projects capex and operating costs. If these are known, or an accurate estimation is made from similar operations, then these figures can be entered directly. However, project costs are often not known with any degree of certainty during the construction of an early financial model. In this case, OHara cost formulae can be used to calculate rough estimates of capex and operating costs (OHara and Suboleski (1992)). Capex Capital costs (capex) are costs in a particular year that will produce benefits in later years. The major capital requirements in mining projects are the cost of constructing the mine site (including purchase of mining equipment), mill and processing plant. Additional costs and expenses that will be incurred in developing a project are termed capital overheads and can be entered into the model as a percentage of the total capex. Operating costs Operating costs (op costs) are costs that only produce a benefit for that year and are calculated annually. In order to establish the total operating costs per tonne of saleable commodity, the costs of mining ore, mining waste and processing must be established. There may be annual fixed operating costs (e.g. administration costs, salaries, office overheads) that must also be incorporated into the model. If coal or an industrial mineral product is the commodity in question, an additional transport cost component must be established. Commodity Price The expected sale price(s) of the product(s) and how this/these will vary over the project life must be established. It must be decided whether the commodity/ies will be sold entirely on the spot market or whether a percentage will be forward sold at a different price. Hedging details must be incorporated into the model if forward sales are to be applied. Expenditure The model must reveal how capex payments are to be spread over the first few years of the project and the amount of working capital to be used must be established. The capex is unlikely to all be employed in the first year of the project, depending on delays and the construction period. Working capital is the capital reserve required for the day-to-day running of the operation and can be expressed as a percentage of the annual operating costs, normally set at around 25%. Environmental and Closure Provisions A financial model should include the expected environmental costs and additional costs associated with the projects closure. This may incorporate a fixed bullet payment at the end of the mine life to cover environmental rehabilitation costs, a sink fund at the beginning of production that acts as an environmental bond to cover rehabilitation costs, and annual environmental costs during production and after mining to cover on-going costs. It must be established how long after completion of mining the annual rehabilitation costs have to be paid. Basic Financial Parameters The financial inputs to the model set the basic financial parameters of the project, such as tax and inflation rate, depreciation, and project financing scenario (Table 1). Discount Rate and Cost of Capital There are two methods of discounting that can be used to calculate the NPV in a financial model. The pre-determined discount rate can be used or the weighted average cost of capital (WACC) can be used. WACC is calculated as follows: As the NPV is calculated on the cash flows before funding but after tax, an allowance is made for the tax implications of interest payments on debt. The cost of debt is calculated as: The WACC thus varies according to the debt/equity ratio of the projects funding structure. The cost of equity is generally higher than the cost of debt, reflecting the higher rate of return required by the equity holders in comparison to the cheaper interest rate on debt. Thus the greater the percentage of total capex funded by debt, the lower the WACC and thus the more favourable the calculated NPV. This is an essential principal of project finance. Project Finance Parameters Input information is required to set up the financing structure of the project including the amount of debt and equity, interest rate and repayment schedule. Capital structure The debt/equity ratio and the size of debt will be decided by the lender. This can be expressed as a percentage of the total financing requirements that will be funded as debt. The optimum draw-down period for the debt funding will be agreed between the project sponsor and lender, and may be drawn out over as long a period as the first five years of the project. Loan type and repayment schedule The schedule for loan repayment needs to be established in order to complete the cash flow model. The number and size of loan repayments will be negotiated between the lender and sponsor, as will the grace period, if any, before repayments must commence. Loan repayments can be made in equal instalments (straight loan) or made proportional to the production rate (production loan). There will be other cash flows associated with organising the project finance that must also be included in the early years of the model. These include an up-front fee by the bank for arranging the loan (a percentage of the total loan available), a commitment fee (an annual fee charged on the amount of the loan that has not been used), fixed charges (for agents fees, legal documentation, independent reports, etc.) and contingency to act as a cushion against unexpected cost rises, etc. (a percentage of the total required funding). Loan interest rate This is the annual rate of interest on the debt as set by the lender. Return on equity This is the annual expected return on equity invested as funds. This can be calculated by a variety of methods including the Capital Asset Pricing Model (CAPM). It is often linked to the overall company gearing of the project sponsor. Demand for Nickel Top of Form Session Headings: Bottom of Form Introduction Nickel is one of the more common elements in the composition of the earth, but it is sparingly distributed in the earths crust. Nickel is usually found in modest concentrations and occurs in conjunction with a wide variety of other metals and non-metals. The worlds nickel resources occur in two main geological settings: in secondary minerals such as garnierite and limonite contained in nickel-bearing laterites; and in sulphide minerals associated with mafic and ultramafic igneous rocks. The nickel grade of lateritic ore typically ranges from 1-2%, and that of sulphide ore from 1-4%. Nickel is of considerable economic and strategic importance to many countries, its main use being a critical component in the development of metal alloys. More than 80% of the worlds nickel production is used in alloys, and about 60% of global nickel is used specifically for the manufacture of stainless steel (NIDI (2005)). Nickel is also used in the manufacture of Monel Metal, a corrosion-resistant alloy used by the shipbuilding industry, and is an important strategic metal. Throughout the early 1980s the growth in nickel production exceeded the growth in demand, but the late 80s and early 90s saw this trend reversed as the number of emerging new applications of stainless steel, combined with its rapidly-improving price competitiveness, generated a sustained growth in demand for nickel metal. Indeed, Chinas use of nickel-containing stainless steel and its use of primary nickel have grown dramatically and with impressive consistency over the last fifteen years (NIDI (2004)). Nickel s tocks were rapidly depleted over the middle years of the 2000s, but recovered during the 2008/9 world financial problem period. Concern over depleting reserves of sulphide ores, the traditional source of nickel metal, and high nickel prices led to renewed interest in nickel laterite ores that were previously thought too technologically difficult and costly to treat. The introduction of High Pressure Acid Leaching (HPAL) as a large-scale hydrometallurgical method of concentrating nickel metal and cobalt by-products from limonitic laterite ore appeared to enhance the feasibility of laterite deposits as a long-term solution to the continuing demand for nickel. However, poor initial operating performances at major new HPAL processing plants have cast doubt over this technologys ability to provide a large-scale supply of nickel while operating economically. So sulphide deposits remain the main source of nickel metal. The following working sessions therefore will concentrate on sulphide nickel deposits and provide a review of the major technical aspects of nickel projects that must be taken into consideration in th e economic analysis of such operations. Part 5 introduces a typical nickel sulphide case history with which to demonstrate the modelling of nickel project finance. Prices and Markets The nickel price is closely linked to the global demand for stainless steel which is in turn governed by industrial productivity associated with the global economic climate. 2007-08 witnessed a huge fall in London Metal Exchange (LME) nickel prices (Figure 1), principally due to the collapse of the world economy resulting in huge drop in demand for and production of stainless steel associated with the recession. 2009 has witnessed a modest resurgence in the LME nickel price as demand has outstripped production. Since 2002, a booming commodities sector, partly driven by the rapid growth of China, put substantial pressure on nickel suppliers to meet demand. This in turn had a huge impact on prices. However, forecasting forward much is dependent on how sustained the 2009 easing of the recession will be. The general trend of increasing nickel prices in through most of the mid 2000s, generated renewed interest in the nickel sector. Western Australia in particular witnessed significant increases in production over the past period, with several new major nickel sulphide and laterite projects arising. However, the new HPAL laterite operations in the region did not live up to expectations, with over-optimistic product

Accounting Terms :: essays research papers

The following explanations of terms are presented to aid in understanding the narrative discussions and illustrations included in this text and the terminology generally used in governmental accounting, auditing, financial reporting and budgeting. Because this glossary is reprinted from the Government Finance Association's Governmental Accounting and Financial Reporting, the terms and explanations have not been modified to reflect specific Texas school district issues, etc. Synonyms for specific terms also may be presented in this appendix. In such instances, the abbreviation "syn." is used before the term. ACCOUNTABILITY. Being obliged to explain one's actions, to justify what one does. Accountability requires governments to answer to the citizenry-to justify the raising of public resources and the purposes for which they are used. Governmental accountability is based on the belief that the citizenry has a "right to know," a right to receive openly declared facts that may lead to public debate by the citizens and their elected representatives. [SGAC1] ACCOUNTING PRINCIPLES BOARD (APB). Authoritative private-sector standard-setting body that preceded the FASB. The APB issued guidance in the form of Opinions. ACCOUNTING STANDARDS EXECUTIVE COMMITTEE (AcSEC). An AICPA committee that is authorized to issue Practice Bulletins. A Practice Bulletin specifically targeted to state and local governments and cleared by the GASB would enjoy "level 2" status on the hierarchy of authoritative sources of GAAP established by SAS No. 69, The Meaning of "Present Fairly in Conformity with Generally Accepted Accounting Principles" in the Independent Auditor's Report. ACCRUAL BASIS OF ACCOUNTING. A method of accounting that recognizes the financial effect of transactions, events, and interfund activities when they occur, regardless of the timing of related cash flows. ACQUISITION COSTS. Term used in connection with public-entity risk pools. Costs that vary with and are primarily related to the acquisition of new and renewal contracts. Commissions and other costs (e.g., salaries of certain employees involved in the underwriting and policy issue functions, and inspection fees) that are primarily related to contracts issued or renewed during the period in which the costs are incurred are considered to be acquisition costs [SGAS 10] ACTIVITY. A specific and distinguishable service performed by one or more organizational components of a government to accomplish a function for which the government is responsible (e.g., police is an activity within the public safety function). ACTUARIAL ACCRUED LIABILITY. Term used in connection with defined benefit pension plans. That portion, as determined by a particular actuarial cost method, of the actuarial present value of pension plan benefits and expenses which is not provided for by future normal costs.

More Respect for Life and Fewer Cluster Bombs :: September 11 Terrorism Essays

More Respect for Life and Fewer Cluster Bombs    Many people's reactions to the atrocities of September 11 have gone from disbelief, to sadness, to anger, quiet or otherwise. We commonly hear that we have received a declaration of war, and should respond accordingly. This essay outlines my arguments for restraint.    The moral case. Morality should be universal. If attacking hostile governments by killing civilians is "evil" and "the very worst of human nature," then it is no better for the U.S. to do so than for Afghanistan to.    The terrorists who attacked the U.S. last week haven't spoken up, but probably would describe U.S. foreign policy with "evil," "cowardly," "despicable," and other words that Bush used. They believe that political ends and avenging wrongs from a foreign military justifies killing enemy civilians, even if their support for the government was only indirect. Analogously, Bush's speech stated that: "We will make no distinction between the terrorists who committed these acts and those who harbor them." Calls for a spectacularly bloody retaliatory strike aimed loosely towards the billion Muslims in the world are increasing, while dissent has been muted. Mountains of historical evidence document America's tolerance for heavy "collateral" damage when attacking the infrastructure of a demonized enemy, such as Saddam or Milosevic.    Tuesday's tragedy demonstrated America's surprising physical vulnerability, but, perhaps more disturbing, our response threatens to show a moral weakness that will be much harder to justify in hindsight.    The practical case. In Israel, extremists on both sides use terrorism and "random" violence for ends which are neither desperate nor irrational -- they aim to derail peace efforts and provoke a violent response on the other side that will cause moderates to reject compromise and side with extremists. "Jew" or "Arab" loses meaning in the face of the deeper struggle between hatred and tolerance, though typically only events such as Yitzhak Rabin's assassination by an extremist Israeli shock people into remembering. These oft-forgotten and crucial lessons from terror sound like Sunday school truisms: "the aim of violence is to beget further violence" and "blood cannot be washed away with blood."    These principles must sound a little other-worldly after Tuesday's atrocities, but there is no other time when it is more important that we remember them. Pausing to note that we can prove very little about the motivations of

causes world war 1 :: essays research papers

It can be said that the First world war was caused by the alliance system, which has a very weak argument, the alliance system had very little to do with the first world war, it did to some extent cause the size of the war, but its argument in my opinion is very weak. Many other causes lean towards the side against the alliance system causing the first world war, which I believe is credible. The alliance system did cause the size of the war as it caused countries to be pulled in. First made in the Franco- Prussian war. Alliances held countries to some sort of standard and normally required something of each participant. The triple alliance signed by Germany, Austria-Hungary and Italy bound each country to give military support in a case of war or â€Å"if any one member of the alliance was at war with any two great powers other members would come to aid†. When the entente was made it did not intend for reciprocal arrangements for support, though it did allow wide variety of arrangements negotiations to take place, one negotiation would have been of support in war. But by 1911 A.J.P Taylor said â€Å"the entente was in the process of disintegration.† and was not seen as strong, because of the triple alliance Germany came to Austria’s aid willingly, which plunged Germany into war. When Germany declared war on France and Russia, Austria- Hungary was pulled into that battle to fulfill their part of the alliance. This had four major powers fighting. Alliances pulled countries into war because if they were not followed a threat of retaliation would be expected. On the other hand. Other causes include Nationalists wanting freedom, causing the Slavs to ultimately assassinate the duke and causing hate towards to Austrian empire. Nationalism was also a major cause of war, it caused problems especially in Austria- Hungary and France. This same nationalism had brought Germany together a one country and who took Alsace- Lorraine from the French in 1870- 1871 in the Franco- Prussian war, and in recent times the Moroccan crisis which left the French with hatred as an attitude towards the Germans, the thought of revenge was also one that was favored by the French nationalists. While this unrest was happening in France, nationalism was also causing problems in the areas of Austria- Hungary, over here the nationalists were slavists

Intersectionality Assignment Essay

The definition of intersectionality states that it is the social theory suggesting various socially and culturally constructed categories of discrimination interact on multiple and often simultaneous levels, contributing to systematic social inequality. Intersectionality holds that the classical models of oppression within society, such as those based on race/ethnicity, gender, religion, nationality, sexual orientation, class, or disability do not act independently of one another; instead, these forms of oppression interrelate creating a system of oppression that reflects the â€Å"intersection† of multiple forms of discrimination. (http://geekfeminism.wikia.com/wiki/Intersectionality) I think the author intended to include intersectionality in the story to show that people have the tendency to categorize others immediately without even getting to know them. As humans we judge others way too much for our own good and we don’t even realize we are doing it majority of the time. I think Morrison’s main purpose in Recitatif is to make the reader a lot more aware of their stereotypical judgements about different races based on the use of different signs that Twyla and Roberta display as characters throughout the story. By writing with this technique of using hidden signs in the text it makes the reader begin to try to naturally figure out the races of Twyla and Roberta. She also includes things in this story such as their views on intelligence, physical appearance, racial tensions, wealth and social class. I think Morrison hopes to make her readers aware that we are all guilty of using stereotypes that this society has created for us. It’s just what we have known all our lives. Maybe a learned behavior from our parents, grandparents, or anyone we are around a lot. Everyone, even if they are racist or the most non-racist human being on earth, makes judgments on a â€Å"different† person that doesn’t fit into their â€Å"norm†. If I had to take a guess I would say Twyla is black and Roberta is white. One part in the story Roberta says that â€Å"they never washed their hair and they smelled funny†, referring to Twyla. Roberta also said this about Twyla’s mother â€Å"She was big. Bigger than any man and on her chest was the biggest cross I’d ever seen. I swear it was six inches long each way. And in the crook of her arm was the biggest bible ever made.† This description sounds like a big African American mother because that’s what you could picture her as. Being Christian, not interested in being friends with Roberta’s mother, and storming away from her gets my mind visualizing that she is the att itude black big momma type of woman. Another thing I decided to look at to help me decide was their names. As the story goes on it gets harder to keep the same the same thought process on who’s apart of what race because of the different stereotypes and statements that are made by the characters when they continue to cross paths later in life. Also because as an individual you start to realize that you are judging and trying not to. For me that begun a whole new way of thinking and continuously changed my opinion about the reading several times At times Roberta could possibly be the black girl and Twyla could be white. In conclusion, its basically left up to you to decide who’s what race and its really going to open your eyes to how judgmental you can be and how big of a role these everyday stereotypes really have on your mind, even when it seems that you have no racism or judging in you.