Advanced analytics for valuation of mine prospects and mining projects

Munizaga-Rosas J.C.; Flores K. · Advanced Analytics in Mining Engineering: Leverage Advanced Analytics in Mining Industry to Make Better Business Decisions (2022) · DOI: 10.1007/978-3-030-91589-6_5

Resumen

This chapter investigates the opportunities for using advanced analytics techniques to establish the value of a mining proposition. The value of mining projects is usually summarized into the financial technical model, which combines technical and financial aspects. The usual main inputs to such models are discussed and the potential sources for the information required in building such models. After the basic framework is established, sources of uncertainty are considered, and ways of characterizing some of them are illustrated. Finally, the chapter concludes with the presentation of the value at risk metric as one possibility that can be used to inform the impact of the underlying financial uncertainty on the value of the project. A case study to illustrate some of the concepts discussed is presented. © Springer Nature Switzerland AG 2022. All rights reserved.

Instituciones: Universidad Nacional del Altiplano