In this episode of Mining Stock Education, host Brian Leni interviews Michael Samis of SCM Decisions. The discussion delves into the intricacies of discounted cash flow (DCF) modeling, focusing on its applications in the mining industry. Key topics include the differences between static and dynamic DCF models, how to effectively deal with risks like metal price fluctuations, jurisdictional considerations, and inflation. Michael shares insights from his 35-year career in mining engineering and valuation, offering practical advice for both seasoned investors and newcomers on utilizing these models to evaluate the economic potential of mining projects. They also discuss the significance of real options and the importance of accurate cash flow risk assessment in making informed investment decisions.

00:00 Intro

00:27 Guest Introduction: Michael Samis

00:31 Understanding Discounted Cash Flow Modeling

02:10 Static vs. Dynamic Cash Flow Models

05:51 Application of Dynamic Models in Exploration

14:54 Challenges and Risks in Modeling

17:42 Learning and Resources for Investors

25:25 Importance of Dynamic Modeling in Modern Markets

32:47 Financing and Joint Ventures Insights

39:05 Final Thoughts and Contact Information

Michael’s website for course info: https://scmdecisions.com/

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