![]() Use option theory and option pricing to apply real option valuation (ROV) to mining projects.Ī degree or diploma in geology, mining or related discipline. Identify the sensitivity of key project variables. Recognize modern project appraisal techniques including the incorporation of risk and probability to generate an expected net present value (ENPV). This innovative text not only provides the theories of option pricing but includes real-world examples and situations. ![]() Total course duration is equivalent to approximately 17 hours of viewing and exercise content. APPLIED COURSE IN REAL OPTIONS VALUATION, offers an excellent guide to option pricing in today's fast paced business world. Course participants are expected to thoroughly work through each example by hand (the aid of Microsoft Excel is encouraged) provided within the course. This may be time-consuming however, it is integral and will ultimately allow a successful completion of the course reviews. The concepts that are addressed in this course may not be easy to grasp at first and may require multiple revisions before a clear understanding is gained. Real Options in Mining consists of 8 viewing sessions with supporting figures, tables and examples, plus interactive course reviews. It is recommended that participants complete the Introductory Mining Project Evaluationcourse (see Related Courses tab) for a full account and discussion of traditional project appraisal concepts. While traditional project appraisal concepts form the basis for the modern approach discussed, the in-depth use of these remain beyond the scope of this course. This course focuses on the use of modern project appraisal techniques culminating in the introduction of real option valuation (ROV) applied to mining projects. The book is full of handy examples and solid explanations. The approach to options doesn't start with heavy derivations and equations of stochastic processes - it starts with the concepts of NPV, abritrage and leads on to options (and real options). This course introduces and explores modern project appraisal techniques with a view to increasing expected value. He's actually taken the time to explain the various models and concepts in finance come together. Modern project appraisal should be dynamic and flexible to accommodate changing market conditions by constantly evaluating options to abandon, defer, open or expand a project while managing risk. Such a passive management approach is fast becoming outdated. Traditional mining project appraisal-discounted cash flow (DCF)-typically involves the use of static variables that remain unchanged across project life and the use of a constant discount rate to account for risk, which ultimately provides a singular view of project value across time.
0 Comments
Leave a Reply. |