Students: João Pedro Jesus, Maria Kostyunina & Marta Gonçalves
Agenda
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Problem Statement
Antamina Project Overview
Assumptions
Prices Forecast
DCF Valuation: 3 Scenarios
Options Valuation
Real Options
Option to Abandon
• Re‐valuation according to changes
Expropriation
Block Funds
• Main Conclusions
Location of Antamina
Problem Statement
How much is
Antamina worth?
Impact of a 5% per year risk of expropriation or a possibility of a two years block funds?
Antamina Project Overview
Antamina Mine
Project:
• Peru government wanted to develop a mine
• Antamina project : offered for sale by auction as part of the privatization of Peru state mining company, Centromin
• Mine, located