Economics at your fingertips  

Valuation Simulation for a Net Smelter Return Royalty on a Mining Project

Peter Bell ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper provides a rough calculation of the economic value of a hypothetical mining operation for a profitable of mineral deposit. I present simplifying assumptions for the deposit geometry and mine production constraints to calculate the value of a net smelter recovery royalty on the mine, which is due a small fraction of gross income from the mine. I calculate the value of the royalty with constant prices and conduct a simulation exercise where the metal price changes quarterly based on historical data for gold futures contracts.

Keywords: Engineering Economics; Mining; Royalties; Finance (search for similar items in EconPapers)
JEL-codes: C00 G00 L7 L72 (search for similar items in EconPapers)
Date: 2018-07-01
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) original version (application/pdf)

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:

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

Page updated 2021-09-25
Handle: RePEc:pra:mprapa:87683