Posts by Gil Tam

Mining projects are built and operated the world overexposing them to political risk that varies with jurisdiction in addition to financial and technical mining risk exposures of a project.  Political risk is the possibility of an investment’s performance being impacted (adversely or otherwise) by the unexpected actions of the host country and other actors such as…

Real option methods have been on the fringe of investment decision-making in the mining industry for the last 30 years. However, the industry has never really accepted real options as a useful extension to the static cash flow methods that are commonly used for investment decision-making. This presentation repositions real options as a dynamic cash…

There is currently much talk in the mining industry about the need for innovation and the start of transformative corporate innovation projects but little discussion about how to value this effort. The focus on innovation is part of a larger category of valuation problems involving information-gathering which also includes exploration and technical pilot programs. While…