Optimal exploration investments under price and geological-technical uncertainty: a real options model

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dc.contributor.authorCortazar, G
dc.contributor.authorSchwartz, ES
dc.contributor.authorCasassus, J
dc.date.accessioned2024-01-10T12:07:14Z
dc.date.available2024-01-10T12:07:14Z
dc.date.issued2001
dc.description.abstractThis article develops a real options model for valuing natural resource exploration investments (e,g, oil or copper) when there is joint price and geological-technical uncertainty. After a successful several-stage exploration phase, there is a development investment and an extraction phase. All phases are optimized contingent on price and geological-technical uncertainty.
dc.description.abstractSeveral real options are considered. There are flexible investment schedules for all exploration stages and a timing option for the development investment. Once the mine is developed, there are closure, opening and abandonment options for the extraction phase. Our model maintains a relatively simple valuation structure by collapsing price and geological-technical uncertainty into a one-factor model.
dc.description.abstractWe apply the model to a copper exploration prospect and find that a significant fraction of total project value is due to the operational, development and exploration options available to project managers.
dc.fechaingreso.objetodigital2024-05-28
dc.format.extent9 páginas
dc.fuente.origenWOS
dc.identifier.doi10.1111/1467-9310.00208
dc.identifier.eissn1467-9310
dc.identifier.issn0033-6807
dc.identifier.urihttps://doi.org/10.1111/1467-9310.00208
dc.identifier.urihttps://repositorio.uc.cl/handle/11534/76260
dc.identifier.wosidWOS:000169146400008
dc.information.autorucInstituto de Economía;Casassus J;S/I;72872
dc.information.autorucIngeniería;Cortázar G;S/I;99516
dc.issue.numero2
dc.language.isoen
dc.nota.accesocontenido parcial
dc.pagina.final189
dc.pagina.inicio181
dc.publisherWILEY
dc.revistaR & D MANAGEMENT
dc.rightsacceso restringido
dc.subjectVALUATION
dc.subjectOIL
dc.subject.ods08 Decent Work and Economic Growth
dc.subject.odspa08 Trabajo decente y crecimiento económico
dc.titleOptimal exploration investments under price and geological-technical uncertainty: a real options model
dc.typeartículo
dc.volumen31
sipa.codpersvinculados72872
sipa.codpersvinculados99516
sipa.indexWOS
sipa.trazabilidadCarga SIPA;09-01-2024
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