A3 Book section, chapters in research books

Modeling the profitability of metal mining investments with real options as a dynamic techno-economic system

LUT Authors / Editors

Publication Details
Authors: Savolainen Jyrki, Collan Mikael, Luukka Pasi
Editors of book: Merkel E., Kunze R., Fichtner, W.
Publishing place: Aachen, Germany
Publication year: 2016
Language: English
Title of parent publication: Einsatz von OR-Verfahren Zur Analyse von Fragestellungen Im Umweltbereich
Start page: 93
End page: 116
Number of pages: 24
ISBN: 978-3-8440-4384-6
JUFO-Level of this publication: 1
Open Access: Not an Open Access publication


This paper presents a system dynamic techno-economic model of a metal mining investment. The model can be used for ex-ante and ex-post analysis of metal mining investment profitability management. The functionality of proposed model is numerically illustrated with a realistic ex-post analysis case, the given illustration shows how the level of working capital affects management ability to exercise operational real options and to maximize the investment value. System dynamic models offer requisite variety for these complex investments and allow for a better analysis of their profitability than conventionally used static models.

Last updated on 2019-22-03 at 13:25