Fortune Minerals — The Nico Project

內容大綱
A publicly traded mining company has an opportunity to develop a mine containing gold, cobalt, and bismuth in Canada’s Northwest Territories and must determine the financial viability of doing so. In order to gauge the attractiveness of the project, the company needs to evaluate the net present value of the opportunity, given volatile and uncertain variables, such as commodity prices and foreign exchange rates. The company must also consider a number of qualitative considerations that may affect the project, such as relations with First Nations communities.
學習目標
The case gives students the opportunity to illustrate various capital budgeting/managerial accounting tools, including net present value, internal rate of return, and payback. The case may also be used to teach core finance principles such as the time value of money and valuation. Given the uncertainty of the financial inputs, students can also perform sensitivity and scenario analysis. Additionally, this case allows students to better understand the metals and minerals industry and address some key qualitative factors affecting companies in that sector.
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