List of Figures -- List of Tables -- Preface -- Acknowledgments -- CHAPTER 1: GENERAL DESCRIPTION OF THE EVALUATION PROCESS -- USERS OF PROJECT EVALUATION METHODS -- CHARACTERISTICS OF MINERAL PROJECT INVESTMENT DECISIONS -- Certainty Versus Uncertainty -- Mutually Exclusive Versus Independent Projects -- Unequal Project and Service Lives -- TYPES OF EVALUATIONS -- Positive Evaluation Methods -- Normative Evaluation Methods -- END PRODUCTS OF PROJECT EVALUATION -- Identification of All Possible Alternatives -- Pro Forma Cash Flow and the Identification of All Factors -- Identification and Quantification of Risks -- Risk and Return -- Identification of Critical Variables -- Identification and Quantification of Value or Rents for Taxation -- Financial Optimization -- CAPITAL BUDGETING AND SCARCE RESOURCES -- DYNAMIC NATURE OF PROJECT EVALUATION -- Steps in Project Evaluation -- The Value of Information -- CHAPTER 2: NONDISCOUNTING METHODS -- COMPARABLE (FAIR MARKET) VALUE -- Variations -- Important Considerations -- BREAKUP VALUE -- REPLACEMENT VALUE -- EARNINGS MULTIPLES -- PAYBACK -- COST ANALYSIS -- Uses of Cost Analysis -- Problems and Misconceptions -- Software Packages -- CHAPTER 3: DISCOUNTED CASH FLOW ANALYSIS -- CASH FLOW (CF) -- DISCOUNTED CASH FLOW -- NET PRESENT VALUE AND INTERNAL RATE OF RETURN -- Net Present Value -- Internal Rate of Return -- Industry's Use of NPV and IRR -- Theoretical Conditions -- Insights Offered by a Rate-of-Return Measure -- IRR Reinvestment Controversy -- Apparent Ranking Conflicts Between NPV and IRR -- The Multiple-Root Problem -- GROWTH RATE OF RETURN, PRESENT VALUE RATIO, AND OVERALL RATE OF RETURN -- BENEFIT:COST ANALYSIS -- HOSKOLD FORMULA -- CHAPTER 4: ACCOUNTING FOR INFLATION AND VARYING DEMAND -- CONSTANT OR CURRENT DOLLARS? -- FORECASTING SUPPLY, DEMAND, AND PRICES -- CONCLUSION.

CHAPTER 5: INCORPORATION OF RISK IN PROJECT ANALYSIS -- SENSITIVITY ANALYSIS -- SCENARIO ANALYSIS -- PROBABILISTIC ANALYSIS AND MONTE CARLO SIMULATION -- The Procedure -- Monte Carlo Simulation Versus Scenario Analysis -- Disadvantages and Constraints -- RISK ATTITUDES AND CERTAINTY EQUIVALENCE -- BAYESIAN DECISION MAKING -- ACCOUNTING FOR POLITICAL RISK -- CHAPTER 6: TIMING AND INVESTMENT OPTIONS -- ACCOUNTING FOR CYCLICALITY -- THE IMPORTANCE OF TIMING -- OPTION PRICING -- CHAPTER 7: OVERVIEW OF OTHER EVALUATION METHODS -- MEASURING ENVIRONMENTAL BENEFITS AND COSTS -- INPUT/OUTPUT ANALYSIS -- ECONOMETRIC MODELING -- MATHEMATICAL PROGRAMMING METHODS -- FINANCIAL ANALYSIS AND DEBT -- ARE SOPHISTICATED METHODS WORTHWHILE? -- CHAPTER 8: AN EVALUATION GUIDE -- STEPS IN PROJECT EVALUATION -- POTENTIAL ERRORS IN EVALUATING PROJECTS AND RISKS -- Excessive Optimism -- Current and Constant Dollar Errors -- Geologic and Technologic Evaluation Errors -- Economic Evaluation Errors -- Errors in the Choice of Discount Rates or Risk Evaluation -- Inconsistency in Risk Evaluation -- EVALUATION OF LARGE PROJECTS -- CONCLUSIONS -- APPENDIX A: A REVIEW OF DISCOUNTING AND COMPOUNDING -- FUTURE VALUE -- NOMINAL AND EFFECTIVE INTEREST -- CONTINUOUS COMPOUNDING -- PRESENT VALUE -- CASH FLOW AND DISCOUNTED CASH FLOW -- NET PRESENT VALUE -- ANNUITIES -- INTERNAL RATE OF RETURN -- Multiple-Root Problem -- Reinvestment Controversy -- Growth Rate of Return -- DISCOUNT RATE VERSUS INTEREST RATE -- WEIGHTED AVERAGE COST OF CAPITAL -- CONSTANT VERSUS CURRENT DOLLARS -- EFFECTS OF INFLATION -- USE OF MULTIPLE DISCOUNT RATES -- NPV-IRR RANKING CONFLICT -- DETERMINATION OF INCREMENTAL IRR -- APPENDIX B: A REVIEW OF OPTION VALUATION -- MINE PRODUCTION AS AN OPTION ON MINERALS -- MINE DEVELOPMENT AS AN OPTION ON DEVELOPED RESERVES.

APPENDIX C: A REVIEW OF RISK TOLERANCE AND CERTAINTY EQUIVALENCE -- PREFERENCE THEORY AND CERTAINTY EQUIVALENCE -- UNDERSTANDING THE RISK TOLERANCE COEFFICIENT -- DETERMINING CERTAINTY EQUIVALENCE FROM PROBABILISTIC DCF -- References -- Glossary.