Abstract
| Original language | English |
|---|---|
| Pages (from-to) | 62-76 |
| Number of pages | 15 |
| Journal | International Journal of Mining and Mineral Engineering |
| Volume | 1 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - 2008 |
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Keywords
- 2008
- analysis
- dcf
- decision
- decision tree analysis
- discounted cash flow
- evaluation of a mining
- flow analysis
- follows
- mcs
- mine project evaluation
- monte carlo simulation
- project using discounted cash
- real options
- reference to this paper
- ro
- should be made as
- topal e
Cite this
Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Evaluation of a mining project using Discounted Cash Flow analysis , Decision Tree analysis , Monte Carlo Simulation and Real Options using an example.
AU - Topal, Erkan
PY - 2008
Y1 - 2008
N2 - Investments in the mining and minerals industry are considered to be risky. The major challenge of project evaluation is how to deal with the uncertainty involved in capital investment. Discounted Cash Flow (DCF) methods, Decision Trees (DT), Monte Carlo Simulation (MCS) and Real Options (RO) are commonly used for evaluating mining projects. This paper briefly reviews the previous studies, outlines and summarises above four methods. Subsequently it employs these methods to evaluate a mining project where the decision whether or not to open the mine is considered. Pros and cons of investigated methods are discussed in the final section.
AB - Investments in the mining and minerals industry are considered to be risky. The major challenge of project evaluation is how to deal with the uncertainty involved in capital investment. Discounted Cash Flow (DCF) methods, Decision Trees (DT), Monte Carlo Simulation (MCS) and Real Options (RO) are commonly used for evaluating mining projects. This paper briefly reviews the previous studies, outlines and summarises above four methods. Subsequently it employs these methods to evaluate a mining project where the decision whether or not to open the mine is considered. Pros and cons of investigated methods are discussed in the final section.
KW - 2008
KW - analysis
KW - dcf
KW - decision
KW - decision tree analysis
KW - discounted cash flow
KW - evaluation of a mining
KW - flow analysis
KW - follows
KW - mcs
KW - mine project evaluation
KW - monte carlo simulation
KW - project using discounted cash
KW - real options
KW - reference to this paper
KW - ro
KW - should be made as
KW - topal e
U2 - 10.1504/IJMME.2008.020457
DO - 10.1504/IJMME.2008.020457
M3 - Article
VL - 1
SP - 62
EP - 76
JO - International Journal of Mining and Mineral Engineering
JF - International Journal of Mining and Mineral Engineering
SN - 1754-890X
IS - 1
ER -