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Paper The following article is Open access

Real Option Technique for an Assessment of the Itakpe Iron Ore Project

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Published under licence by IOP Publishing Ltd
, , Citation Adeola R. Amusan and Ini Adinya 2021 J. Phys.: Conf. Ser. 1734 012047 DOI 10.1088/1742-6596/1734/1/012047

1742-6596/1734/1/012047

Abstract

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.

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10.1088/1742-6596/1734/1/012047