What’s the Option Worth? Valuing a Mothballed Platinum Mine
May 19 2022
67 mins

Mines are often mothballed when they become unprofitable to operate. Monte Carlo simulations and decision trees can be used to estimate the underlying price at which unprofitable operating mines should be mothballed and mothballed mines recommissioned. This presentation illustrates how a mothballed platinum mine can be assessed and valued as a real option. Although a mine may be unprofitable, it still has value which can be estimated!
Presenters
David Holland, Fractal Value Advisors