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306031 (v.1) WASM Resource Sector Finance 602
Area: | WASM Mineral Economics Teaching Area |
Credits: | 25.0 |
Contact Hours: | 32.0 |
Lecture: | 8 x 4 Hours Fortnightly |
Anti Requisite(s): | 10945 (v.3) WASM Project Evaluation 601
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Prerequisite(s): | 10940 (v.3) WASM Resource Sector Finance 601 or any previous version
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Syllabus: | Time value of money and Discounted Cash Flow(DCF) methods - a review, Sensitivity and Risk Analysis, Monte Carlo simulations, optimum mine life risk and decision analysis decision trees. Options and Option Valuation - Stochastic Processes and the Black-Scholes analysis. Real Option Pricing in the Mineral and Energy Sectors - Valuing Operating Options. |
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Unit Outcomes: | On successful completion of this unit, students will have- Become familiar with recent developments in risk analysis and project evaluation, including the application of option valuation methodologies to project and investment opportunities decisions in the mineral and petroleum sector. Been in a position to communicate with specialists in these fields and to fully understand and therefore become capable of interpreting and explaining the results of sophisticated analyses and evaluations carried out by 'experts'. Been provided with an ideal 'springboard' to further pursue the subjects of risk analysis and of real option valuations as applied to the resources sector at greater professional depth. |
Texts and references listed below are for your information only and current as of September 30, 2003. Some units taught offshore are modified at selected locations. Please check with the unit coordinator for up-to-date information and approved offshore variations to unit information before finalising study and textbook purchases. |
Unit References: | Baker, M.P., Mayfield, E.S. and Parson, J.E. (1998), Alternative models of uncertain commodity prices for use with modern asset pricing methods. The Energy Journal V.19 (1) pp. 115-148. Bradley, P. (1998), On the use of MAP for comparing alternative royalty systems for petroleum development projects. The Energy Journal v. 19 (1) pp. 47-82. Claeya, J. and Walkup, G. (1999), Discovering real options in oilfields exploration and development. SPE Hydrocarbon Economics and Evaluation Symposium, Dallas, Society of Petroleum Engineers. Clemen, R. (1996), Making hard decisions: an introduction to decision analysis (second edition). New York, Duxbury Press. Faiz, S. (2001), Real option applications: from success in asset valuation to challenges for an enterprise approach. Dallas, Society of Petroleum Engineers. Torries, T.F. - 1998 - Evaluating Mineral Projects: Application and Misconceptions - Society for Mining Metallurgy and Exploration Inc. Copeland, T. E. & Keenan, P.T. (1998)How much is Flexibility worth? McKinney Quarterly 1992, N.Z. Jacoby, H. and Laughton, D. (1992), Project evaluation: a practical asset pricing method. The Energy Journal v.13, pp.19-47. Kirkwood, C.W. (2002), Decision tree primer. Temple, Arizona State University. |
Unit Texts: | Benninga, S. (2000), Financial modelling (second edition). Cambridge, MIT Press. Mun, J. (2002), Real Options Analysis. New Jersey, John Wiley and Sons. |
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Unit Assessment Breakdown: | Class and individual assignments 40%. Final examination 60%. This is by grade/mark assessment. |
Field of Education: | 80500 Sales and Marketing (Narrow Grouping) | HECS Band (if applicable): | 2 |
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Extent to which this unit or thesis utilises online information: | Not Online | Result Type: | Grade/Mark |
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Availability
| Year | Location | Period | Internal | Area External | Central External | | 2004 | Kalgoorlie Campus | Short Period 11 | Y | | | | 2004 | Kalgoorlie Campus | Summer Period | Y | | |
Area
External | refers to external course/units run by the School or Department, offered online or through Web CT, or offered by research. |
Central
External | refers to external course/units run through the Curtin Bentley-based Distance Education Area |
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