Economic Variables of the Mineral Project like the Factors Affecting Cash Flow.docVIP

Acta Montanistica Slovaca Ro?ník 12 (2007), ?íslo 2, 133-139 Economic Variables of the Mineral Project like the Factors Affecting Cash Flow Michal Cehlár, Ivana Cehlárová a Jana Szabóová 1 Ekonomické premenné z projekcie minerálov ako faktory ovplyvňujúce peňa?ny tok The task of analysing the investment and concrete project is to ensure reliable information connected with designing, mining method, production costs, recovery, consulting means (e.g. character of used bank systems, geo-statistic and geographical information systems, etc.) and many other variable factors. In fact it is necessary to use quantitative values for project variables, based on technical analysis. Only in instances when variables are quantified, a study of the economic efficiency of the mining business can result in conclusions and a quality investment decision can be made. Key words: investment, mining project, cash-flow, net present value, time value of the money, pay back period Introduction When assessing the economic efficiency of investments implemented by means of a project, with the effort being to comprehend its internal consequences, it is necessary to proceed step by step, and gradually implement all variables affecting its result into the project assessment. In order to reach such an outcome, it is suitable to split the project analysis into four basic levels: ? ? ? ? study of the basic project, taxation and depreciation effects, loans and their effects on a project, study of the whole project (taxes and loan). When studying the basic project, the most important thing is to identify whether the economic development of the project implementation guarantees positive results and an economic return on the spent investments. In fact, the expression of rate is not so important as the actual environment in which the project will be located is considered in the mentioned levels. Econo