ABOUT MARKET PREMIUM AND THE ROLE OF OPTIMISATION IN MINE PROJECT EVALUATION
When a mining project is announced to the market (e.g., ASX) it is common to see a divergence between market pricing and technical analyst/investor valuations (based on DCF and NPV). This difference, often known as the ‘market premium’ may be either positive or negative. One of the reasons some market analysts allocate a ‘premium’ on mining projects is the lack of an integrated optimisation process when evaluating the mine project.
