Evaluating investment projects in mining industry by combining discount method and real option valuation

Modern specialised literature and business practice differentiate an increasing number of methods for evaluating investment projects, but the majority of authors adopted the general division onto non-discount (classical, traditional) methods, discount methods, and methods for preliminary project evaluation. Evaluation results are the basis for making positive or negative investment decisions. This paper provides an overview of the dynamic methods for evaluating investment projects in mining industry as well as the examples of their application in practice.