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Financial evaluation of mineral deposits using sensitivity and probabilistic analysis methods.

Bennett HJ; Thompson JG; Quiring HJ; Toland JE
MISSING, 1970; :1-82
This study was undertaken to develop a computer program for use in evaluating an investment in a mineral deposit when uncertainty may exist in the input data. The program developed can be used to perform sensitivity and/or probabilistic financial analyses. Included in the report are techniques that may be used to select the best alternative investment opportunity, mining and processing methods, and production rate. The criterion used to measure the relative advantages of these investment and operating alternatives is the discounted-cash-flow rate of return. The theory and methods used in the probabilistic analysis approach, which is based on the premise that the expression of a range of values is more realistic than the choice of a single value, are described. The sensitivity analysis method is also described; it is combined with the probabilistic analysis to interrelate mineral reserves, capital investments, operating costs, and production rates. The computer program was written in Fortran II and should run without modification on most computers having 8k (8,000-word) core memory, a card reader, and printer (120 characters per line). (Out of print.)
Mineral deposits; Computer programs; Data processing; Cost analyses; Mining; Return on investment; ROI; Costs; Cost effectiveness; Minerals; Analytical processes; Mineral processing
Publication Date
Document Type
IH; Information Circular
Fiscal Year
Identifying No.
IC 8495
Source Name
Page last reviewed: December 10, 2021
Content source: National Institute for Occupational Safety and Health Education and Information Division