The paper focuses on the optimal control of natural resources in mining industry. The purpose is to pro- pose an optimal extraction series of these resources during the lifetime of the Mine＇s maintenance. Fol- lowing...The paper focuses on the optimal control of natural resources in mining industry. The purpose is to pro- pose an optimal extraction series of these resources during the lifetime of the Mine＇s maintenance. Fol- lowing the proposed optimal control model, a sensitivity analysis has been performed that includes the interest rate impact on the optimal solution. This study shows that the increasing of the interest rate sti- mulates faster extraction of the resources. The discounting factor induces that the resource has to be extracted faster hut this effect is counterbalanced by the diminishing returns of the annual cash flow. At higher parameters of ＂alpha＂ close to one of the power function about 80% from the whole resource will be extracted during the first 4 years of object/mine maintenance. An existence of unique positive root with respect to return of investment has been proposed and proved by two ways： by the ＂method of chords＂ and by using specialized software.展开更多
In order to effectively avoid the defects of a traditional discounted cash flow method, a trinomial tree pricing model of the real option is improved and used to forecast the investment price of mining. Taking Molybde...In order to effectively avoid the defects of a traditional discounted cash flow method, a trinomial tree pricing model of the real option is improved and used to forecast the investment price of mining. Taking Molybdenum ore as an example, a theoretical model for the hurdle price under the optimal investment timing is constructed. Based on the example data, the op- tion price model is simulated. By the model, mine investment price can be computed and forecast effectively. According to the characteristics of mine investment, cut-off grade, reserve estimation and mine life in different price also can be quantified. The result shows that it is reliable and practical to enhance the accuracy for mining investment decision.展开更多
The paper extends the Adle and Dumas's simple regression approach of foreign currency hedging to the case of exposure to multiple foreign currencies and provides extension methodology.
文摘The paper focuses on the optimal control of natural resources in mining industry. The purpose is to pro- pose an optimal extraction series of these resources during the lifetime of the Mine＇s maintenance. Fol- lowing the proposed optimal control model, a sensitivity analysis has been performed that includes the interest rate impact on the optimal solution. This study shows that the increasing of the interest rate sti- mulates faster extraction of the resources. The discounting factor induces that the resource has to be extracted faster hut this effect is counterbalanced by the diminishing returns of the annual cash flow. At higher parameters of ＂alpha＂ close to one of the power function about 80% from the whole resource will be extracted during the first 4 years of object/mine maintenance. An existence of unique positive root with respect to return of investment has been proposed and proved by two ways： by the ＂method of chords＂ and by using specialized software.
文摘In order to effectively avoid the defects of a traditional discounted cash flow method, a trinomial tree pricing model of the real option is improved and used to forecast the investment price of mining. Taking Molybdenum ore as an example, a theoretical model for the hurdle price under the optimal investment timing is constructed. Based on the example data, the op- tion price model is simulated. By the model, mine investment price can be computed and forecast effectively. According to the characteristics of mine investment, cut-off grade, reserve estimation and mine life in different price also can be quantified. The result shows that it is reliable and practical to enhance the accuracy for mining investment decision.
文摘The paper extends the Adle and Dumas's simple regression approach of foreign currency hedging to the case of exposure to multiple foreign currencies and provides extension methodology.
