Optimisation with options
We provide a valuation framework for mining projects incorporating options to vary mining, processing and stockpiling rates, options to alter processing and stockpiling cutoff grades, options to expand mining and processing capacities and the option to abandon. Each of these real operating options i...
| Main Authors: | , |
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| Format: | Journal Article |
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Institute of Mining and Metallurgy
2011
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| Online Access: | http://hdl.handle.net/20.500.11937/41024 |
| _version_ | 1848756030075305984 |
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| author | Elkington, T. Gould, John |
| author_facet | Elkington, T. Gould, John |
| author_sort | Elkington, T. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | We provide a valuation framework for mining projects incorporating options to vary mining, processing and stockpiling rates, options to alter processing and stockpiling cutoff grades, options to expand mining and processing capacities and the option to abandon. Each of these real operating options is exercisable in response to price variability for the mineral being mined. With a case study application, we demonstrate that project optimisation with recognition of real options (versus without) entails: increased project value, as expected; and, at project outset, prescription of lower processing capacity (with lower associated capital expenditure), higher processing cutoff grade and greater use of stockpiles. |
| first_indexed | 2025-11-14T09:05:43Z |
| format | Journal Article |
| id | curtin-20.500.11937-41024 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T09:05:43Z |
| publishDate | 2011 |
| publisher | Institute of Mining and Metallurgy |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-410242017-09-13T16:05:06Z Optimisation with options Elkington, T. Gould, John We provide a valuation framework for mining projects incorporating options to vary mining, processing and stockpiling rates, options to alter processing and stockpiling cutoff grades, options to expand mining and processing capacities and the option to abandon. Each of these real operating options is exercisable in response to price variability for the mineral being mined. With a case study application, we demonstrate that project optimisation with recognition of real options (versus without) entails: increased project value, as expected; and, at project outset, prescription of lower processing capacity (with lower associated capital expenditure), higher processing cutoff grade and greater use of stockpiles. 2011 Journal Article http://hdl.handle.net/20.500.11937/41024 10.1179/1743286311Y.0000000013 Institute of Mining and Metallurgy restricted |
| spellingShingle | Elkington, T. Gould, John Optimisation with options |
| title | Optimisation with options |
| title_full | Optimisation with options |
| title_fullStr | Optimisation with options |
| title_full_unstemmed | Optimisation with options |
| title_short | Optimisation with options |
| title_sort | optimisation with options |
| url | http://hdl.handle.net/20.500.11937/41024 |