List of Figures -- List of Tables -- Preface -- Acknowledgments -- CHAPTER 1: Introduction -- CHAPTER 2: Integrating Economics Into Mining -- MINE-PLANNING PROCESS -- APPLICATION OF ECONOMIC EVALUATION PROCEDURES -- Justifying Exploration Expenditure -- Strategic Assessment of Mining Projects -- Selection of Reserve Blocks and Phased Mine Development -- Comparison of Mining Equipment Options -- Overall Project Evaluation -- CHAPTER 3: Cost-Effective Mining Schemes -- KEY ELEMENTS -- Operating Cost Characteristics -- Capital Requirements and Capital Characteristics -- Sensitivity to Change and Scope to Adapt to Change -- Consistency With Knowledge and Philosophy of the Owner -- THE SYSTEMATIC PLANNING PROCESS -- ECONOMIC DATA AT EACH PHASE OF THE PLANNING CYCLE -- Broad-Brush Planning Phase -- Strategic Planning Phase -- Subsequent Planning Phases -- CHAPTER 4: Costs -- COST FROM AN ECONOMIC PERSPECTIVE -- TYPES OF COSTS -- MARGINAL COSTS -- COSTS WITH MULTIPRODUCT MINES -- CHAPTER 5: Time Value of Money -- VALUATION AT A CONSTANT POINT IN TIME -- Present Values and Future Values -- Regular Streams of Income and/or Expenses -- DISCOUNTED CASH FLOW ANALYSIS -- Basis of Cash Flow Analysis -- A Sample Discounted Cash Flow -- Capital Expenditures, Production, Revenues, and Operating Costs -- Working Capital, Salvage Values, and the Timing of Cash Flows -- Depreciation, Depletion, Tax Credits, and Taxation -- Applying Accounting Rules to Cash Flow Calculations -- DISCOUNT FACTORS, RISK, UNCERTAINTY -- INFLATION AND CONSTANT MONEY CALCULATIONS -- DISCOUNTED CASH FLOW RANKING CRITERIA -- DISCOUNTED AVERAGE COST -- Internal Pricing -- A Sample Discounted Average Cost Calculation -- CHAPTER 6: Systematic Approach to Exploration Expenditure -- SYSTEMATIC APPROACH TO EXPLORATION EXPENDITURES -- UNDEVELOPED DEPOSITS -- Reserves in the Ground: An Example.

Mining Reserves: An Example -- INITIAL ASSESSMENTS -- Cutoff Grades -- Cost Ranking -- Pit Optimization -- CAPITAL VALUES AND DEVELOPMENT STRATEGIES -- Limiting the Mining Options Available -- Amount of Capital a Mine Will Support -- Impact of Production Rate -- SUMMARY -- CHAPTER 7: Ownership Costs and Capital Costs -- MACHINE LIFE AND CAPITAL COST -- AVERAGE INVESTMENT METHOD -- EQUIVALENT LEASE COST -- DISCOUNTED AVERAGE COST -- CHAPTER 8: Operating Costs -- INTRODUCTION -- OPERATING SCHEDULES -- SOURCES OF COST INFORMATION -- SUPPLY COSTS -- JOB CONDITIONS -- OPERATING COST DATA -- Power (Energy and Demand) -- Fuel and Lubrication -- Tires -- Maintenance Supplies (Repair Parts) -- Operating Supplies (Wear Parts) -- Major Overhauls -- Labor Costs -- EXAMPLE EQUIPMENT COST SCHEDULES -- CHAPTER 9: Investment Decisions -- DCF COMPARISON OF TWO ALTERNATIVES -- PAYBACK -- SENSITIVITY ANALYSIS -- MANAGEMENT COST OR ACCOUNTING COST? -- CHAPTER 10: Operating Mine Case Study -- TECHNICAL ANALYSIS: WASTE REMOVAL -- STRATEGIC CHOICE -- ECONOMICS OF CAPITAL UTILIZATION -- Economics of Overtime -- Economics of Underutilization -- ECONOMICS OF OPERATIONAL DECISIONS -- ASSET MANAGEMENT CONSIDERATIONS -- CHAPTER 11: Project Evaluation -- LABOR NUMBERS AND COSTS -- INDIRECT COSTS -- Government Charges -- Freight -- Civil Works -- Development Costs -- Administration Costs -- Pit and Maintenance Services -- BUILDING UP A CASH FLOW -- Cost Database -- Cost Centers -- Flowchart -- CHAPTER 12: Mining Strategy -- INTRODUCTION -- THE INVESTMENT DICHOTOMY: RISK AND RETURN -- CRITERIA FOR DECISION MAKING -- "VALUE" WITH UNCERTAIN CHOICE -- CHAPTER 13: Traditional Mechanisms for Valuing Mining Enterprises -- TRADITIONAL PROJECT EVALUATION -- SHORT-FORM EVALUATION TECHNIQUES -- Operating Mines -- Mining Strategy.

CHAPTER 14: Decisions Involving Uncertainty, Risk, and Return -- DETERMINING THE APPROPRIATE DISCOUNT RATE -- EXPECTED RETURNS AND THE COST OF CAPITAL -- Marginal Cost of Capital for Individual Projects -- Risk Tolerance: The Uncertainty Criterion -- Guidelines -- CHOICE AMONG PROJECTS WITH DIFFERENT RISK -- VALUE AS A FUNCTION OF RISK -- A Case Study: New or Old Equipment? -- THE VALUE (AND DIFFICULTY) OF PROBABILISTIC ASSESSMENT -- A Case Study: Equity Valuation -- PROBABILISTIC ASSESSMENTS WITH UNCERTAIN INPUTS -- CHAPTER 15: At-Risk Discounted Cash Flow Analysis -- ROLE OF COST IN A DECISION -- CAPITAL AND REAL OPTIONS -- UNDERSTANDING RISK THROUGH WORST-CASE SCENARIOS -- EXAMPLE STUDY: AT-RISK CAPITAL CALCULATION -- Conventional Analysis: Return on All of the Capital Invested -- Worst-Case Analysis: Determining the Nonrisk Capital -- At-Risk Analysis: Return on Risk Capital -- GUIDELINES FOR THE AT-RISK CAPITAL APPROACH -- CHAPTER 16: Mining Strategy and Knowledge -- STAGES OF STRATEGIC MANAGEMENT -- Stage 1: Mining Management by Intuition -- Stage 2: Financial Planning and Control -- Stage 3: Forecast-Based Planning -- Stage 4: Shareholder Value Focus -- MINING STRATEGY: WHERE TO GO FROM HERE? -- Shareholder Value -- Dynamic Approach to Mining Strategy -- NEW TOOLS FOR STRATEGIC MANAGEMENT OF MINING ORGANIZATIONS -- Entrepreneurship -- A Market-Based View of the Firm -- Capital Value and Asset Management -- Dispersed and Tacit Knowledge -- Human Capital -- APPENDIX A: Financial Tables -- Glossary -- References -- Biography.