Simulates a distribution of Net Present Values of a mine via a forecasting model for Iron Ore Prices
NPV_Analysis.m
%% Mining Economic Analysis
% To mine or not to mine? In recent times, a very important multimillion or billion dollar question to ask. Would you trust making this decision without the proper research to know the future economic potential of a mine? Or perhaps more importantly, whats the risk of making a decision without having the research backed up by detailed models that forecast potential outcomes?
% This webinar will highlight:
% Net Present Value Distribution Analysis of a mine
% Modelling & Simulation of future Prices & Interest rate paths
% Risk Assessment based on distribution of economic outcomes.
% In this webinar we aim to showcase how MATLAB can be used to develop and formalise a process for more detailed modelling of the future economic cash flow of a mine. We will show how existing spreadsheet solutions, that use Average Values or Simplistic distributions which havent been modelled, can be replaced by models that are based on actual historical data that produce distributions of possible economic outcomes.
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% Products Used:
% MATLAB, Statistics Toolbox, Optimization Toolbox, Financial Toolbox, Econometrics Toolbox, Spreadsheet Link EX.
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% David Willingham, MathWorks Sept 2012
%% Simulate Interest Rates
interest_script;
%% Simulate Iron Ore Prices
ironoreprice_script;
%% Calculate Cash Flows
cashflow_script;
%% Discounting (NPV)
discounting_script