Use option pricing analysis to determine whether | Chegg
Current market price of copper: $3.135 per pound. Expected price of copper in one year: $3.2285 per pound. Expected fixed costs of mining and refining: $5,000,000. Expected variable costs of mining and refining: $2.6435 per pound. Cost to restore the land and remediate environmental damage: $1,000,000. No taxes are paid on profits from the project
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Copper
Missouri ranks number seven in copper production in the U.S. (U.S. Geological Survey, 2020) and has recorded copper production since the 1830s. Total copper production in Missouri equals nearly 600,000 tons. Based on 2018 prices, Missouri copper has produced more than $3.6 billion dollars of value throughout its history.
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Copper demand forecasts and predictions of future scarcity
The model forecasted copper demand for 1990 and 1995. The explanatory variables were industrial production, the copper price, the aluminum price, the copper-aluminum price ratio, and time. The study found that demand and supply were inelastic in terms of price and that demand for copper was determined mainly by the level of …
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Royalty design in copper mines: How mining variables …
36 37 Economics, Markets and Applications Economics, Markets and Applications 2. The effective tax rate for copper mining in Chile Commodity price cycles have an important influence in economic ...
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A comparison of pricing models for mineral rights: Copper mine …
The value-added tax rate is 17% and the import tariff rate of copper is 0 (in China case). Referring to Chinese Association of Mineral Resources Appraisers (2010), the official DCF method uses a discount rate of 8%. 3.1. The valuation of the mineral right on a particular appraisal date.
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Copper price determination: fundamentals versus non …
The value-added tax rate is 17% and the import tariff rate of copper is 0 (in China case). Referring to Chinese Association of Mineral Resources Appraisers (2010), …
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Mission copper output to rise 16%, says Asarco
Tony Davis Arizona Daily Star. Despite a slowdown in copper prices for most of this year, Asarco plans to boost annual copper production at its Mission mine complex by 16 percent, by expanding its ...
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Optimizing value on a copper mine by adopting a
Reliable 3D spatial modelling of these variables plays an important role in mine planning and mineral processing, in which it can improve the overall viability of the mining projects.
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Estimating processing cost for the recovery of valuable …
Sensitivity analysis was used to examine the contribution of the selected variables to the total cost of processing of mine tailings. ... In the case of copper …
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Gold-Copper Mining Investment Evaluation Through
A gold-copper mine project was chosen to be a case study, where the technical input parameters were obtained from a gold mining company in Canada. The main purpose of the project is gold mining; the copper average grade was the byproduct. The model variables were gold price, copper price, and 10-year US Treasury bond (T …
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Mine operating costs and the potential impacts of energy and …
Energy costs typically comprise one of the largest ongoing costs of mining operations, of which 70% is devoted to the comminution of the ore (Norgate and Jahanshahi, 2010). Furthermore, the most significant energy cost occurs in the grinding circuit of the Milling section, where up to 97% of the energy cost is incurred (Ballantyne …
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Short-Run and Long-Run Effects of Copper Mining on …
The unique positive short-run effect was the 0.33% increase in the real international price of copper ( On the other hand, if the LCUPt). Δ. percentage change in the taxes on mining companies were to increase 1%, then in the next month the real gross domestic product ( LRGDPt) would decrease negligibly by. Δ. 0.003%.
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Short-Run and Long-Run Effects of Copper Mining on …
Short-run is defined here as one month. Four autoregressive behaviours were observed in the short run: mining investment, taxes on mining companies, copper production and the real international price of copper. The endogenous variable mining investment (∆LMINV t) decreased 0.28% in the short run.
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Operating Cost for Miners | SRK Consulting
This paper will investigate common methodologies of estimating operating costs for mines and present examples from actual operations and why those methods were selected. It …
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Estimating processing cost for the recovery of valuable …
Sensitivity analysis was used to examine the contribution of the selected variables to the total cost of processing of mine tailings. ... In the case of copper recovery plant, the operating cost of Chilean copper mining is about 5,300 US$/t of Cu (COCHILCO, 2015), with a current market price of the metal of about 10,000 US$/t. The model shows ...
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Metal Market Analysis: An Empirical Model for Copper …
mining and concentration of low -grade ores containing copper sulfide minerals, followed by smelting ... supply with prices and other exogenous variables. Therefore, this paper …
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Comparing different real option valuation approaches as applied …
Others, have modeled the exchanges' reference prices of some commodities to conduct applied studies, for instance Zhang et al. (2015), who employ the LBMA price of gold for the valuation of a mining project, and Guj and Chandra (2019), who model the LME copper price to apply to the real option valuation of a copper mine.
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STATE MINERAL POLICY AND COPPER-NICKEL MINING …
COMPARISON OF MAJOR VARIABLES AFFECTING PROFITABILITY,,--Copperprice, copper mill recovery, copper ore grade, initial capital, operating costs, nickel price, nickel mill recovery, nickel ore. gra~e, property tax, state income tax, debt/equity ratio, production tax, occupation tax. 17.5. REQUIRED COPPER AND NICKEL PRICES FOR 15% …
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COST ESTIMATION FOR OPEN PIT MINES: …
Stebbins S A., Leinart J B: Cost Estimating for Surface Mines, Chapter 4.9, published in SME Mining Engineering Handbook, pp.281-293, Society for Mining, Metallurgy, and Exploration, Inc 2011
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Solved ABC Corp. mines copper, with fixed costs of $0.60/lb
ABC Corp. mines copper, with fixed costs of $0.60/lb and variable cost of $0.30/lb. The 1-year forward price of copper is $1.10/lb. The 1-year effective annual interest rate is 6.2%. One-year option prices for copper are shown in the table below. Strike Call Put 0.9500 $0.0649 $0.0178 0.9750.
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Copper Prices Waver as Global Supply Faces New …
Nonetheless, copper prices remain sideways and sit only 1.5% above where they stood at the start of 2023. An increase among all of its components helped the Copper Monthly Metals Index (MMI ...
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Copper mines becoming more capital-intensive and costly to …
Copper mining has become an especially capital-intensive industry – the average capital intensity for a new copper mine in 2000 was between US$4,000-5,000 to build the capacity to produce a tonne of copper, in 2012 capital intensity was $10,000/t, on average, for new projects. Today, building a new copper mine can cost up to $44,000 per tonne ...
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Solved You own a copper mine. The price of copper is
You own a copper mine. The price of copper is currently 1. 5 0 per pound. The mine produces 1 million pounds of copper per year and costs 2 million per year to operate. It has enough copper to operate for 1 0 0 years. Shutting the mine down would entail bringing the land up to EPA standards and is expected to cost 5 million.
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Royalty design in copper mines: How mining variables
36 37 Economics, Markets and Applications Economics, Markets and Applications 2. The effective tax rate for copper mining in Chile Commodity price cycles have an important …
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Copper mines becoming more capital-intensive …
Copper mining has become an especially capital-intensive industry – the average capital intensity for a new copper mine in 2000 was between US$4,000-5,000 to build the capacity to produce a tonne of …
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Solved XYZ Co. mines copper, with fixed costs of $0.50/lb
XYZ Co. mines copper, with fixed costs of $0.50/lb and variable cost of $0.40/lb. The 1-year forward price of copper is $1/lb. The 1-year continuously compounded interest rate is 6%. If XYZ does nothing to manage copper price risk, what is its profit 1 year from now, per pound of copper if copper price in 1 year is $1.00/lb?
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Metal Market Analysis: An Empirical Model for Copper …
mining and concentration of low -grade ores containing copper sulfide minerals, followed by smelting ... supply with prices and other exogenous variables. Therefore, this paper attempts to bridge a gap in the literature. ... Copper …
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Operating Cost for Miners | SRK Consulting
This paper will investigate common methodologies of estimating operating costs for mines and present examples from actual operations and why those methods were selected. It will highlight why some methods are superior to others. Finally, we will explore the potential pit falls in cost estimation that often occur and the opportunities that may ...
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Solved ABC Corp. mines copper, with fixed costs of $0.60/lb
Finance. Finance questions and answers. ABC Corp. mines copper, with fixed costs of $0.60/lb and variable cost of $0.30/lb. The 1-year forward price of copper is $1.10/lb. The 1-year effective annual interest rate is 6.2%. One-year option prices for copper are shown in the table below. Strike Call Put 0.9500 0.0649.
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ICSG Factbook 2020
Copper Mine Production by Country: Top 20 Countries in 2019 12 Trends in copper Mining Capacity, 2000‐2024 13 Top 20 Copper Mines by Capacity, basis 2020 14 ... Copper Stocks, Prices and Usage (Jan 2001 ‐ Jun 2020) 33 Chapter 7: Copper Usage 34 How is Copper Used? 34 World Refined Copper Usage, 1900‐2019 35 Refined Copper Usage …
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