資源・環境政策・経済、資源開発

[3408] Evaluation of the Expansion Option of the Selibe Central Cu/Ni Mine Project in Selibe Phikwe Mine, Botswana using Real Options

資源・環境政策・経済

^〇Dineo Sefemo¹, 安達毅¹ (1.秋田大学)

司会: 村上 進亮 (東大)

Keywords:Discounted Cash Flow, Real Options, Management Flexibility, Botswana

This paper contributes towards the known theoretical and practical applications of real option valuation to the Selibe Central Cu/Ni expansion project in Selibe Phikwe mine in Botswana. Discounted cash flow analysis alone for project evaluation is inadequate and hence an implementation of Real option valuation technique to account for both market and technical risks that exist in mining .The results present an improved management flexibility for strategic decision making under the face of uncertainty and a view of profit maximization /loss minimization that is not captured by the discounted cash flow analysis.