Using the Discount Cash Flow Model in Preliminary Assessment for Gold Mine Projects
Helal H. Hamd_Allh1, M.R. Moharram2, Mohamed A. Yssin3, A. Kh. Embaby4
1Helal H. Hamd_Allh*, Mining and Petroleum Dept., Faculty of Eng., Al-Azhar University, Qena, Egypt.
2Prof. M.R. Moharram, Professor in Mining Engineering, Cairo, Egypt.
3Prof. Mohamed A. Yassin, Mining and Petroleum Dept., Faculty of Eng., Al-Azhar University, Cairo, Egypt.
4Assoc. Prof. A. Kh. Embaby, Mining and Petroleum Dept., Faculty of Eng., Al-Azhar University, Cairo, Egypt.
Manuscript received on February 10, 2020. | Revised Manuscript received on February 20, 2020. | Manuscript published on March 30, 2020. | PP: 1935-1940 | Volume-8 Issue-6, March 2020. | Retrieval Number: E6725018520/2020©BEIESP | DOI: 10.35940/ijrte.E6725.038620
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: This study aims to the examination of the economic potential for the Abu Marawat Gold Project (AGP) in the Eastern Desert of Egypt and prediction the decision about go/not-to-go to invest in the deposit location. Discount Cash Flow (DCF) model used to calculate the Net Present Value (NPV) for the proposed gold mine project. NPV calculated by taking the risk and uncertainty produced from geological and technical factors into account. The actual production and cost data for Sukari Gold Mine (SGM) of Egypt used a benchmark for the theoretical calculation for production and cost data of AGP. From the valuation processes for AGP the NPV for the project predominantly positive, so, the project is acceptable to investment.
Keywords: Valuation, Economic potential, Abu Marawat gold project, Discount cash flow, Net Present Value
Scope of the Article: Software economics.