Open AccessReal Option Technique for an Assessment of the Itakpe Iron Ore Project
Author(s) -
Adeola R. Amusan,
Ini Adinya
Publication year - 2021
Publication title -
journal of physics. conference series
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.21
H-Index - 85
eISSN - 1742-6596
pISSN - 1742-6588
DOI - 10.1088/1742-6596/1734/1/012047
Subject(s) - iron ore , flexibility (engineering) , scalability , expiration , value (mathematics) , business , computer science , economics , operating system , management , materials science , metallurgy , medicine , machine learning , respiratory system
This study examines the viability of an iron mining mineral with the approach of real options, which allows the mining project flexibility and scalability. A positive value for the Option to delay was achieved, which indicates the feasibility of the Itakpe project. In addition, the Option to abandon before the expiration of the project under unfavorable market conditions was obtained.