Chapters authored
Expected Return on Capital in Mining Industry
Capital is a necessary element of each economic activity. In the enterprises functioning in capital-consuming industries, such as mining industry, the problem of capital becomes more complex and is followed by a number of problems. Investors (both owners and creditors) expect the return on invested capital, taking into consideration the risk level connected with the activity that is to be financed by them. The problem raised in this work is related to the determination of the ways of calculation of the expected return on capital from the point of view of capital provider, with the inclusion of the specificity of mining industry. The universal calculation methods in use are difficult to be applied in the enterprises from mining industry because of the specific character of risk emerging in these enterprises, unique character, and high capital consumption. The author suggests modification of one of the most popular methods and presents her own, new solutions in this area, adjusted to the specificity of mining enterprises. The solutions presented allow a more realistic look on the issue of financing mining activity.
Part of the book: Contributions to Mineralization