Case ID: 297054
Solution ID: 37103
Words: 946
Price $ 75

Bidding for Antamina Case Solution

Case Solution

The establishment of Peru has taken up an activity of privatizing the national firms and establishments. Regarding this privatization administration, the legislature has offered offers for a copper mine venture in Peru. There is a key pre-imperative for the imminent offering firms. The fruitful bidder ought to have a total assets in abundance of $100 million. I am satisfied to educate you that our organization satisfies this rule. Moreover, the offering method began by the administration is not totally straight forward and contains some implanted choices.

Excel Calculations

NPV Comparision Chart

Summary

 NPV of Project (Section A)

 NPV of Project (Section B)

 NPV of Project (Section C)

Raw Input Data 

 DISCOUNT RATE PARAMETERS

 OUTCOME PROBABILITIES

 CORRELATION TABLE

 WACC CALCULATION

Simulation summary

 COMMODITY PRICES AND YIELDS

 NO OPTIONS PV AT YEAR 2

 OPTIONS I (NO PENALTY) PV AT YEAR 2

 OPTIONS II (PENALTY) PV AT YEAR 2

Simulation results

  No Options PV at Year 2 

  Commodity Prices and Yields 

  Option  I  (No penalty) PV at year 2

  Option  II  (With Penalty) PV at year 2

2-yr prices 

 Correlation Table

 Mean Reversion Parameters

DCF - HIGH 

DCF - EXPECTED

DCF - LOW

Questions Covered

Bid Proposal on the Antamina polymetalic prospect in Peru.