A dynamic model for valuing flexible mining exploration projects under uncertainty

Oscar Miranda, Luiz E. Brandão and Juan Lazo Lazo

Resources Policy, 2017, vol. 52, issue C, 393-404

Abstract: Mining ventures are long term irreversible capital investments that operate in a highly uncertain environment and which typically present significant managerial flexibility. It is a well-known fact that due to their option-like characteristics, the value of these managerial flexibilities is not captured by traditional valuation techniques, such as the discounted cash flow method.

Keywords: Dynamic models; Mining; Valuation; Real options (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301420716301945
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:52:y:2017:i:c:p:393-404

DOI: 10.1016/j.resourpol.2017.04.002

Access Statistics for this article

Resources Policy is currently edited by R. G. Eggert

More articles in Resources Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().