Mineral Economics

  1. Risk and Uncertainty in Mine Investment
    1. Sources of Risk
      1. Price Risk
        1. Commodity Price Volatility
          1. Currency Risk
          2. Reserve Risk
            1. Resource Estimation Uncertainty
              1. Grade Variability
              2. Technical and Operational Risk
                1. Equipment Failure
                  1. Process Variability
                    1. Geological Surprises
                    2. Political and Country Risk
                      1. Regulatory Changes
                        1. Expropriation Risk
                          1. Political Instability
                          2. Environmental and Social Risk
                            1. Community Opposition
                              1. Environmental Liabilities
                                1. Permitting Delays
                                2. Financial Risk
                                  1. Interest Rate Risk
                                    1. Credit Risk
                                  2. Risk Analysis Techniques
                                    1. Sensitivity Analysis
                                      1. Single Variable Analysis
                                        1. Tornado Diagrams
                                          1. Break-even Analysis
                                          2. Scenario Analysis
                                            1. Best Case Analysis
                                              1. Worst Case Analysis
                                                1. Base Case Analysis
                                                  1. Probability Weighting
                                                  2. Monte Carlo Simulation
                                                    1. Probability Distributions
                                                      1. Correlation Modeling
                                                        1. Simulation Results Interpretation
                                                        2. Decision Trees
                                                          1. Sequential Decision Modeling
                                                            1. Expected Value Calculations
                                                          2. Real Options Analysis
                                                            1. Option to Defer
                                                              1. Value of Waiting
                                                                1. Optimal Timing
                                                                2. Option to Expand
                                                                  1. Expansion Flexibility
                                                                    1. Staged Development
                                                                    2. Option to Abandon
                                                                      1. Abandonment Value
                                                                        1. Switching Options
                                                                        2. Option to Contract
                                                                          1. Compound Options
                                                                            1. Valuation Methods
                                                                              1. Black-Scholes Model
                                                                                1. Binomial Models

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                                                                            4. Mine Project Evaluation and Investment Analysis

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                                                                            6. Mine Financing