Estimation of economic efficiency of mineral resource base development projects using the real options method
https://doi.org/10.17073/2072-1633-2018-3-280-286
Abstract
The article has indicated by the problem of assessing the effectiveness of investment projects of development of mineral resource base in the face of declining quality of raw materials and the transition to the working out of deposits with low content of useful components. The problem of providing with raw materials is relevant for the ferrous metallurgy of theRepublicof Uzbekistan. The decision can be the development of a deposit of titanium-magnetite ores «Tebinbulak» with low iron content. Justification of the effectiveness of such a project requires the use of modern tools. The article has substantiated the possibility of using real options to assess the economic efficiency of investment projects to develop the mineral resource base. In this paper we have considered the concept of real options in relation to the field of investment projects to develop the mineral resource base, have developed a classification of possible options in this area. To assess the value of real option of the project of develop the mineral resources base we have proposed to use Black– Scholes model, have given the interpretation of elements of model in relation to this sphere. On an example of field development project titanomagnetite ores «Tebinbulak» has evaluated the strategic value of the project with realigning option expectations.
About the Author
E. A. Pozdnyakova
UMMC Technical University; JSC «Uralmekhanobr»
Russian Federation
Russian Federation
Cand . Sci . (Econ .), Associate Professor, 3 Uspensky Prospekt, Verkhnyaya Pyshma, Sverdlovsk Region 624091;
Head of the Feasibility Study Department, JSC «Uralmekhanobr», 87 Khokhriakov Ul ., Ekaterinburg 620144.
References
1. Yakubov N.M. Mineral resources base of ferrous metallurgy today and the prospects for the development of the steel industry in Uzbekistan. Ekonomika v promyshlennosti = Russian Journal of Industrial Economics. 2015. No. 2. Pp. 119–123. (In Russ.) DOI: 10.17073/2072-1633-2015-2-119-123
2. Akhmedov N.A., Zavyalov G.E., Zemlyanov A.A. and others. Rudnye mestorozhdeniya Uzbekistana [Ore deposits of Uzbekistan]. Tashkent: GIDROINGEO, 2001. 661 p. (In Russ.)
3. Mavlyanov N.G., Turamuradov I.B., Isakhodjaev B.A. Mineral and raw materials base of the Republic of Uzbekistan. Gornyi Zhurnal. 2007. No. 10. Рр.63–68. (In Russ.)
4. Gazaleeva G.I., Sopina N.A., Mushketov A.A. Dressing technology for Tebinbulak iron ore. Gornyi Zhurnal. 2014. No. 9. Pp.23–28. (In Russ.)
5. History of «Uzmetkombinat» JSC: 70 years of development and the nearest prospects. Chernye Metally. 2014. No. 3. Pp. 41–51. (In Russ.)
6. Damodaran A. Investitsionnaya otsenka. Instrumenty i metody otsenki lyubykh aktivov [Investment valuation. Tools and methods for valuing any assets]. Moscow: Alpina Biznes Buks, 2004. 1342 p. (In Russ.)
7. Limitovsky M.A. Investitsionnyye proyekty i real’nyye optsiony na razvivayushchikhsya rynkakh [Investment projects and real options in emerging markets]. Moscow: Delo, 2004. 528 p. (In Russ.)
8. Boukreeva A.A., Kharitonova N.A. Reducing the risks of the investment activities of industrial enterprises on the basis of the method of real options. Ekonomika v promyshlennosti = Russian Journal of Industrial Economics. 2012. No. 1. Pp. 17–21. (In Russ.). DOI: 10.17073/20721633-2012-1-17-21
9. Vysotskaya T.R. Application of the method of real options for the evaluation of investment projects. Digestfinance. 2006. No. 2. Pp. 18–22. (In Russ.)
10. Goroshnikova T.A., Kuznetsova Т.S. Neopredelennost’ i nepredskazuyemost’ real’nykh optsionov pri planirovanii investitsionnoy politiki [Uncertainty and unpredictability of real options when planning investment policy]. Upravleniye razvitiyem krupnomasshtabnykh sistem MLSD’2015. Materialy Vos’moy mezhdunarodnoy konferentsii: v 2 tomakh. Moscow: Izdatel’stvo: Institut problem upravleniya im. V.A. Trapeznikova RAN, 2015. Pp. 243–246. (In Russ.)
11. Bruslanova N. Evaluation of investment projects using the real options method. Finansovyi direktor = Chief Financial Officer. 2004. No. 4. Pp. 3–10 (In Russ.)
12. Bukhvalov A.V. Real options in management: an introduction to the problem. Rossiiskii zhurnal menedzhmenta = Russian Management. 2004. No. 1. Pp. 3–32 (In Russ.)
13. Romanova O.A., Pozdnyakova E.A. Methodological approach to efficiency evaluation of hightech materials production. Vestnik UrFU. Seriya: Ekonomika i upravlenie = Bulletin of Ural Federal University. Series Economics and Management. 2013. No. 1. Pp. 25–36. (In Russ.)
14. Baev I.A., Alyabushev D.B. Economic evaluation of innovation projects according to the real option method. Vestnik Yuzhno-Ural’skogo gosudarstvennogo universiteta. Seriya: Ekonomika i menedzhment = Vestnik of the South Ural State University. Series: Economics and Management. 2010. No. 39(215). Pp. 25–31 (In Russ.)
15. Yatsenko B.N. Performance evaluation of the capital investment projects accepting administrative pliability during the embodying (an estimate of real options). Audit i finansovyi analiz = Audit and financial analysis. 2006. No. 2. Pp. 153–165. (In Russ.)
16. Kozhevnikov D. Primenenie modelei «real’nykh optsionov» dlya otsenki strategicheskikh proektov [Application of «real options» models for the evaluation of strategic projects]. Moscow: MFTI, 2001. 318 p. (In Russ.)
17. Bukhvalov A.V. Real Options in Management: Classification and Applications. Rossiiskii zhurnal menedzhmenta = Russian Management. 2004. No. 2. Pp. 27–56 (In Russ.)
18. Platonov V.V. Intellektual’nye aktivy i innovatsii: problema otsenki, ucheta i upravleniya [Intellectual assets and innovations: the problem of evaluation, accounting and management]. St. Petersburg: Izd-vo GOU VPO «Sankt-Peterburgskii gosudarstvennyi universitet ekonomiki i finansov, 2008. 161 p. (In Russ.)
19. McMillan L. Optsiony kak strategicheskoye investirovaniye [Options as a strategic investment]. Moscow: Publishing House «Evro», 2003. 1209 p. (In Russ.)
20. Methodical recommendations for assessing the effectiveness of investment projects: Approved by the Ministry of Economics of the Russian Federation, the Ministry of Finance of the Russian Federation, the State Committee of the Russian Federation for Construction, Architecture and Housing Policy 21.06.1999 No. VK 477. Available at: http://docs.cntd.ru/document/1200005634 (accessed: 11.07.2018). (In Russ.)
Review
For citations:
Pozdnyakova E.A. Estimation of economic efficiency of mineral resource base development projects using the real options method. Russian Journal of Industrial Economics. 2018;11(3):280-286. (In Russ.) https://doi.org/10.17073/2072-1633-2018-3-280-286
Views:
803
Email this article 