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International finance and investment strategies for Iron Ore Miners, Dr Molavi , Dr Tehrani
m	
≒ m
,	
≒ m
Ques(on	#1	
How	Iranian	Companies	take	
decision	for	its	鍖nance	and	
investments	strategies?
Ques(on	#2	
How	Interna(onal	Companies	take	
decision	for	its	鍖nance	and	
investments	strategies?
Ques(on	#3	
What	is	The	role	of	companies	
capital	Structure	for	鍖nance	and	
investment	strategies?
Ques(on	#4	
What	is	your	company's	capital	
structure?
Capital	Structure	and	Cost	of	Capital	
≒ What	is	your	capital	structure?	
	
Equity	
100%	
Equity	
83%	
Debt	
17%	
Equity	
45%	
Debt	
55%
Capital	Structure	and	Cost	of	Capital	
≒ What	is	the	cost	of	capital?	
	
Equity	
83%	
Debt	
17%	
Cost	of	Equity	:	Re	
Cost	of	Debt:	Rd
Capital	Structure	and	Cost	of	Capital	
≒ Weighted	Average	Cost	of	Capital	(WACC)	
≒ The	WACC	of	company	show	us	the	poten(al	
of	compe((veness	with	rivals!	
≒ High	WACC	means	you	need	High	Margin	and	
High	IRR	range	projects.	
≒ Is	it	good	for	you?
Capital	Structure	and	Cost	of	Capital
Capital	Structure	and	Cost	of	Capital
Capital	Structure	and	Cost	of	Capital
Capital	Structure	and	Cost	of	Capital
Capital	Structure	and	Cost	of	Capital	
What	is	the	Iranian	companies	WACC?	
What	about	your	business?	
How	about	Australian	or	Brazilian	Rivals	?
Capital	Structure	and	Cost	of	Capital
Glencore	PLC	WACC
BHP	WACC
Rio	Rinto	WACC
CHINA	SHEHUMA	WACC
Our	Future	and	WACC	
≒ My	own	money?	
≒ Domes(c	Finance?	
≒ Interna(onal	Finance?	
≒ Domes(c	Investment?	
≒ Interna(onal	Investment?	
≒ Mergers	and	Acquisi(on	?	Domes(c	of	
Interna(onal
Thank	you

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International finance and investment strategies for Iron Ore Miners, Dr Molavi , Dr Tehrani