Using Commodity Price Projections In Mineral Project Valuation (e14ad808-00f6-41c6-a874-e60c8a10a41d)

It is well known that the anticipated mineral price at the start of a prospective mineral project can have an overwhelming effect on a property's ex ante value. However, possible price movements throughout the life of a project can also have an impact on this value. This paper demonstrates how different potential price paths can affect project value. When considering commodity price projections for mine valuations, it is thus necessary to estimate not only the expected commodity price at the start of the project, but also the manner in which that price is likely to fluctuate throughout the project's life.