Show simple item record

dc.contributor.advisorDagdelen, Kadri
dc.contributor.authorVisnjic, Marko
dc.date.accessioned2018-06-21T18:29:51Z
dc.date.accessioned2022-02-03T13:11:55Z
dc.date.available2018-06-21T18:29:51Z
dc.date.available2022-02-03T13:11:55Z
dc.date.issued2018
dc.identifierVisnjic_mines_0052N_11554.pdf
dc.identifierT 8549
dc.identifier.urihttps://hdl.handle.net/11124/172413
dc.descriptionIncludes bibliographical references.
dc.description2018 Summer.
dc.description.abstractProduction scheduling under commodity price uncertainty has suffered from an exponentially increasing problem size as simulations and real options flexibility are used to generate and evaluate production schedules. The use of unsupported commodity price behavior mechanisms and fundamental problems in risk adjustment have resulted in incorrect treatment of commodity price risk in production scheduling. Previous work on this subject has considered both the real options and production scheduling components yet has failed to honor both simultaneously and integrate them completely. The proposed methodology maintains a problem size similar to that of a deterministic solution yet fully adjusts the production schedule for market attitudes towards commodity price risk. Five economic scenarios consisting of the proposed methodology, price simulations and traditional discounted cash flow (DCF) are explored using a commercially available production scheduling package. It is concluded that the proposed methodology provides a supportable and risk adjusted basis for production scheduling. Using simulations shows that mine plans cannot be evaluated against price paths as has been done in previous work; yet results in an impossibly large problem size when done correctly. As the traditional DCF scenarios are heuristically selected they are unsupportable and consequently result in unsupportable production schedules and valuations.
dc.format.mediumborn digital
dc.format.mediummasters theses
dc.languageEnglish
dc.language.isoeng
dc.publisherColorado School of Mines. Arthur Lakes Library
dc.relation.ispartof2018 - Mines Theses & Dissertations
dc.rightsCopyright of the original work is retained by the author.
dc.subjectprice uncertainty
dc.subjectreal options valuation
dc.subjectproduction scheduling
dc.subjectmine planning
dc.titleMineral asset valuation under price uncertainty using real options
dc.typeText
dc.contributor.committeememberMiller, Hugh B.
dc.contributor.committeememberJohnson, Thys B.
dc.contributor.committeememberLange, Ian
thesis.degree.nameMaster of Science (M.S.)
thesis.degree.levelMasters
thesis.degree.disciplineMining Engineering
thesis.degree.grantorColorado School of Mines


Files in this item

Thumbnail
Name:
Visnjic_mines_0052N_11554.pdf
Size:
1.021Mb
Format:
PDF

This item appears in the following Collection(s)

Show simple item record