Antamina Case Study Analysis Introduction & Context The Antamina Mining Company (“CMA”) faced a set of critical decisions related to technical‚ logistical‚ political and financial challenges for establishing copper and zinc mining operations in a remote area of the Northern Peruvian Andes in the 1990s. This analysis is based primarily on the SEKN Case Study from March 5‚ 2007‚ entitled “Moving Mountains: The Case of the Antamina Mining Company”. Specifically‚ we considered the following
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ANTAMINA CASE: In what way is the development of Antamina mine a real option? Compare it to a financial option. The Antamina mine case can be modeled as a real option. An option in financial terms is the right to buy/sell something‚ it is not mandatory to buy/sell‚ is a choice that the owner can do. If you can earn with the exercise of the option‚ you use your right‚ but if it is not the case you simply do not utilize it. In this way the return derived from an option is asymmetric. In real term
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1. In what way is the development of a copper mine like Antamina a real option? In what way is the bidding structure put in place by the Peruvian government an option? Real options represent the right but not the obligation to make investment decisions once uncertainties unfold. Real options include management flexibility which is the concept that management can change their decisions about a certain investment over time when a particular aspect of the investment uncertainty becomes known. In real
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do you think that words can move mountains Nowadays‚ the press is considerate like the fourth power of the world. In fact‚ much people look or read news everyday. So they are certainly manipulated and influenced by her because of the things diffused or published. If words influence people‚ can they “move mountains” or not? First‚ we will see how they do and the second part will show words’difficulties. In my opinion‚ words have an inacessible power. Consequently‚ words can convince somebody
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_____ days to moving day. Do you think you all set? 2. Why is the moving industry filled with fraudsters? 3. Do you think you are ready to move? Maybe you should think again 4. This email contains all the right information to make the right move 5. Too many moving companies? We think so too and we are here to help 6. Can you really be sure your move will go smooth? 7. It’s time to get serious about choosing the right moving company A2 Introduction 1
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HRM 410 Group- A BACKGROUND AMC Moves to Colombia: AMC was one of the leading coal mining company in America for a long period of time and it was among the top 300 largest private companies in America before it shifted to Colombia. AMC had a reputation of providing high quality coal‚ reliable delivery and excellent service. AMC told its workers that the company would not transfer its operations to abroad but they did eventually. AMC moved to Colombia because the country provided some very crucial
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Bashundhara R/A‚ Dhaka‚ Subject: Submission of Case analysis on “American Minor Company” Dear Sir‚ It gives us immense pleasure to inform you that I‚ the members of Group “E”‚ have successfully completed case analysis. It has been a great learning experience for us. As a group‚ we faced some problems to complete the whole case. We had tried our level best to propose an effective completion of the case. We sincerely hope that the case will come up to your expectations. We would like
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Problem Statement Antamina Project Overview Assumptions Prices Forecast DCF Valuation: 3 Scenarios Options Valuation Real Options Option to Abandon • Re‐valuation according to changes Expropriation Block Funds • Main Conclusions Location of Antamina Problem Statement How much is Antamina worth? Impact of a 5% per year risk of expropriation or a possibility of a two years block funds? Antamina Project Overview Antamina Mine Project: • Peru government wanted to develop a mine • Antamina project : offered for sale by auction
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CHAPTER 7‚ Case #1 BETHESDA MINING To analyze this project‚ we must calculate the incremental cash flows generated by the project. Since net working capital is built up ahead of sales‚ the initial cash flow depends in part on this cash outflow. So‚ we will begin by calculating sales. Each year‚ the company will sell 600‚000 tons under contract‚ and the rest on the spot market. The total sales revenue is the price per ton under contract times 600‚000 tons‚ plus the spot market sales times the
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Bethesda Mining Company 02/24/2011 Introduction Bethesda Mining is a midsized coal mining company with 20 mines located in Ohio‚ Pennsylvania‚ West Virginia‚ and Kentucky. Recently the coal mining industry has been impacted by environmental regulations that have presented challenges for the industry. However‚ a combination of increased demand for coal and new pollution reduction technologies has led to an improved market demand for high-sulfur coal. Bethesda is considering operating a new strip
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