Real option model sensitivity analysis in mineral resources investment

The establishment of the real option evaluation model enrolls uncertainties in line with the actual investment situations. The flexibility of investment decision-making is enhanced, which provides a broad space in the field of the investment analysis and evaluation. Mineral resources investment is a complex process and the application of real option model on this issue is intensively discussed. It is believed that the real option model can better predict the investment environment uncertainty in mineral resources exploration and development. The sensitivity analysis indicates the key factors in decision-making process which have different impacts on the future revenue. A case study is provided to prove the effectiveness of the real option model, and the single and multi-factor sensitivity analyses are discussed to guide the mineral resources investment activities.