Quantitative Finance

Dennis L Buchanan and Mark H A Davis

Chapter 10 in Metals and Energy Finance:Interrelationship between Technical and Financial Risk in Mineral Projects, 2025, pp 247-272 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This book is based on the precept that mineral resource engineering and financial engineering are equally important aspects of project development. The latter includes use of “real options” based on the Black–Scholes formula, and other project risks including interest rate uncertainty and credit risk. This chapter provides a whistle-stop tour of the mathematical methods of quantitative finance that address these problems. Much more detail can be found in the textbooks listed at the end of the chapter.

Keywords: Valuation of Mineral Projects; Mining Geology; Mineral Economics; Mineral Evaluation; Platinum Group Element Exploration & Production; Gold Exploration & Production; Mining Feasibility; Technical & Financial Appraisal of Mining Projects; Mining Finance; Environmental Impact of Mining; Valuation of Mineral Projects; Extractive Industry Finance; Coal Projects; Mining Methods; Extractive Metallurgy; Mineral Reserves & Resources; Base Metal Projects; Metals & Energy Project Appraisal & Finance; Financial Services; Mining & Petroleum Extractive Industries; Financial Engineering; Quantitative Finance; Natural Resource Projects; Minerals & Mining; Financial Modelling; Commodity Prices; Investment Performance Indicators; Technical Risk; Mineral & Petroleum Geoscience; Minerals & Petroleum Engineering; Valuation Techniques for Mineral Projects; Resource Evaluation; Geostatistics; Real Option Valuation; Gearing Optimisation; Base & Precious Metals; Feasibility Studies (search for similar items in EconPapers)
JEL-codes: G20 G30 O13 Q40 Q43 (search for similar items in EconPapers)
Date: 2025
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