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- Uncertainty in mining investments (ores, industrial minerals, energy minerals): market uncertainties, technological uncertainties, regulatory uncertainties, etc., difference between uncertainty and risk, random walk models.
- Introduction to Real Options: What are Real Options, when they are used, differences between Real Options and traditional investment valuation methods (discounted cash flows, Decision Trees, Monte Carlo Stochastic Simulation).
- Categories of Real Options: Option to defer an investment, Option to expand an investment, Option to contract an investment, Option to abandon an investment, Complex rights.
- Real Options analysis: Black – Scholes Equation, Binomial lattice approach.
- Real Options Applications: Real Options applications in oil industry, mineral deposits, selection of climate change adaptation measures.
