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DETERMINATION OF DISCOUNTING PARAMETRES IN FEASIBILITY STUDY OF IRON ORE DEPOSITS
Abstract
According to the evaluation practice minerals deposits have different levels of geological and feasibility study, so discounts is not only a tool for multi-temporal cash flows, but also an important tool for geological risks assessment. Thus, the determination of the discount rate should be based not only on the economic conditions for management of the mining enterprise, but also on level of geological knowledge, probability of reserves evaluation. Practical use of the discount parameters affects the commercial value and the status of iron ore reserves. Methodical questions of determination of discount parameters in feasibility study of iron ores deposits were examined. Requirements for using of discount rate for the regulatory and commercial evaluation were analyzed. Dependence between value indicators of minerals deposits and discounting parameters were defined. The authors propose to define the discount rate, taking into account the complexity of geological structure of the deposit, level of geological knowledge and confidence of mineral resources, as well as the liquidity of minerals.
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References6
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The discount rate of the National Bank of Ukraine // http://www.bank.gov.ua/control/uk/publish/article?art_id=53647
Tsukanov I.L., Bogdanov S.D., Bogdanov N.S., Tkach A.A. The basic principles of hydrocarbon reserves valuation in justifying of minimum payment at licensing stage // www.ValNet.ru
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