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An approach to variable discount rate mo

Rossen A. Halatchev

2026engold miningopen pit miningproject evaluationdiscount raterisk modelingMonte Carlo simulation

Abstract

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The paper offers a theoretical model of variable risk-adjusted discount rate for economic valuation of open pit gold mine projects. The model incorporates variable mining project risk that takes into account the uncertainty of all possible variables of the project discounted cash flow analysis. The mining project risk is defined with a few sub-risk models, such as, geological, mining, mineral & metallurgical processing, economic and geomechanical. A Monte Carlo simulation technique is used for modeling the stochastic behavior of the operating discounted cash flows. A case study is provided to illustrate the applicability of the new discount rate model to the valuation of a hypothetical open pit gold mine.

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@article{280f9234-4a6e-41eb-a389-3e1a743e8780,
  title={An approach to variable discount rate mo},
  author={Rossen A. Halatchev},
  year={2026},
  language={en}
}
TY  - JOUR
TI  - An approach to variable discount rate mo
AU  - Rossen A. Halatchev
PY  - 2026
LA  - en
ER  -

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