Browsing by Author "Dauzie, Emmanuel"

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    Risk and uncertainty effects on mineral project evaluation in Ghana
    (1993) Dauzie, Emmanuel
    Ghana as a developing country abounds in a lot of mineral resources that need to be exploited for the benefit of its citizens. Hence legislations are in place to attract the necessary foreign and local investment in the mineral industry. However, for any meaningful investment there are bound to be some problems associated with it. Risk is one such problem. In this dissertation, a study is made of the various types of risk and uncertainties affecting the mining industry in Ghana. By evaluating the financial situation of a hypothetical mine, the expected NPV and IRR from the cash flow is determined. Monte Carlo simulation techniques are employed with frequency distributions for the various risk parameters. After a number of iterations, the value of the risk parameters has been derived for the mine. These were used to evaluate the NPV and the IRR. The final result indicates that despite the high risk factors associated with a developing country like Ghana, mineral projects in Ghana are viable. It gives an insight into the likely situation of a mineral venture in the country taking all risk parameters into consideration.