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Simulation Framework for Economic Modeling of Mineral Resources

Peter Bell ()

MPRA Paper from University Library of Munich, Germany

Abstract: 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)
Date: 2018-03-08
New Economics Papers: this item is included in nep-agr
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