Decision making in mining is a process of selecting not only the best among the different alternatives or strategies but also the one that is practical and tractable.
Option (that includes real option) analysis in mining is a managerial/corporate selection process based on the idea that changes over time will affect the cost and profit of a future mining investment.
If there is no option to change the decision, then mining managers must abide by the original decision.
However, by creating an option for a decision in the future, managers can choose to pursue mining investments that are then deemed profitable.
Decision making is fundamentally based on option analysis.
ROMPEV‘s effective mine strategic business decisions process and expertise help mining companies to tackle the right issues, and develop the right process to bring together the right resources for the right markets at the right time.
ROMPEV aims to provide its clients with a far greater understanding of the key value drivers, risks and optionalities inherent within their projects by providing:
- Assistance to corporate/management in developing a Real Options framework for evaluating their project portfolio.
- Assessment of existing decision-making tools and/or development of new tools as required.
- Determination of appropriate technical parameters for inclusion in evaluation models.
- Quantification of data uncertainty.
- Scheduling and prioritisation of decision pathways or projects based on a qualitative and quantitative metrics.
- Value optimisation by assessing different decision paths under certain conditions or determining how using a different sequence of pathways can lead to optimal.
- Developing investment timing strategies including optimal trigger values, cost or revenue drivers.