Selecting a market value approach for greenfield projects

Shcheglov E.V.1, Sotnikov M.S.2, Nugumanov E.K.3
1 Пермский филиал Института экономики Уральского отделения Российской академии наук, Russia
2 Воронежский государственный университет, Russia
3 Башкирский государственный университет, Russia

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Journal paper

Journal of Economics, Entrepreneurship and Law (РИНЦ, ВАК)
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Volume 12, Number 12 (december 2022)

Citation:

Shcheglov, E. V., Sotnikov, M. S., & Nugumanov, E. K. (2022). Selecting a market value approach for greenfield projects. Journal of Economics, Entrepreneurship and Law, 12(12), 3345-3360. https://doi.org/10.18334/epp.12.12.116894

Indexed in Russian Science Citation Index: https://elibrary.ru/item.asp?id=50208220
Cited: 1 by 07.12.2023

Abstract:
Projects at the initial stage of development (greenfields) play a significant role in the mineral resource complex of the world. Strategic and financial investors and other stakeholders need appropriate tools for evaluating such companies at any stage of their technological development. Common methods of determining the cost of mining projects at the initial stage of development are considered. The study is based on Russian oil-producing greenfields, as well as on listed mining companies data. Conclusions about the applicability of the DCF method to the real market are drawn. This data can be useful to appraisers of such projects, as well as to the academic staff conducting research on relevant methods of evaluating such projects. FUNDING: This article was prepared in accordance with the R&D plan of of the Institute of Economics of the Ural branch of the Russian Academy of Sciences.

Keywords: mining company, greenfield, junior company, investment, discounted cash flow

Funding:
Работа подготовлена в соответствии с планом НИР ИЭ УрО РАН

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