Authors: M. Cehlár, P. Rybár, J. Mihók, J. Engel

Title of the article: Analysis of investments in the mining industry

Year: 2020, Issue: 1, Pages: 4-31

Branch of knowledge: 25.00.22 Geotechnology (underground, open and construction)

Index UDK: 622.271.3

DOI: 10.26730/2618-7434-2020-1-4-31

Abstract: The task of analysing the investment of concrete project is to ensure reliable of information connected with designing, mining method, production costs, recovery, consulting means (e.g. character of used bank systems, geo-statistic and geographical information systems, etc.) and many other variable factors. In fact it is necessary to use quantitative values for project variables, based on technical analyses. Only in instances when variables are quantified, a study of the economic efficiency of the mining business can result in conclusions and a quality investment decision can be made. The same approach applies not only to the decision to invest before starting production itself, such as with a new project, but also for the decision to invest into already ongoing projects, in cases of expanding production or the renewal of obsolete and worn-out technologies. Everyday operation requires an information analysis of the high quality project management in both its technical and economic aspects. Thus, the economic assessment of a mining project or setting the limit of the economic efficiency of a mining business requires a large amount of information that must be processed in one place using one system. As an effect of the decision making process with regard to the above mentioned consequences requires the analysis of many alternatives, also the facts such as costs, profit, savings, project duration, taxes, increased inflation effects, project risk and others must be taken into consideration. In this article, the following stages are considered: the study of the main project, the study of the impact of taxes and depreciation, the effect of credit, tools for economic decision-making, as well as sensitivity analysis - a method that describes the uncertainty inherent in each project, especially for mining projects.

Key words: mining industry investments sensitivity analysis economic decision making projecting

Receiving date: 16.02.2020

Approval date: 23.02.2020

Publication date: 05.05.2020

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