Simulation Framework for Economic Modeling of Mineral Resources
Peter Bell ()
MPRA Paper from University Library of Munich, Germany
This paper describes an approach to include uncertainty over the commodity price when modelling the economic attributes of a mine plan for a mineral resource. The approach starts with a method to generate price paths from a broad historical set to establish a set of price paths, where the NPV is calculated for each path to generate a distribution for the NPV. It goes on to describes how to use this distribution to compare different mine plans in a manner that is similar to stress testing.
Keywords: Mineral Resource; Simulation; Uncertainty; Economics (search for similar items in EconPapers)
JEL-codes: C00 C02 G1 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:85075
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