Using Commodity Price Projections In Mineral Project Valuation

It is well known that anticipated mineral prices can have an overwhelming effect on a property's expected value. However, price movements throughout the life of a project also affect value. Thus, it is necessary to not only estimate the expected commodity price at the start of a project but also the manner in which that price is likely to fluctuate throughout the project's life. This paper provides a simple method of incorporating mineral price movements into mineral project valuations.