Aeromag, Financial Management

Our geologist, Rebecca Paulka, has estimated from the earlier exploration that the Malian prospects have a 30% likelihood of containing economic quantities of uranium ore, the Niger properties have a 25% likelihood but the WA prospect has only about a 10% likelihood of containing economic ore. The directors have therefore decided to concentrate exploration activities in Mali and Niger.

The discovery of an economic ore body is likely to be worth about $30m to FJE as we can sell it on to a larger company. Rebecca has said that the best way to start would be to conduct an aeromag survey in both Mali and Niger, and André's advice is that this would cost about US$100 per square kilometre in both countries. An aeromag equipped aircraft would be available in about 3 months in Mali and in about 2 months in Niger. Set up costs would be about $20,000 in each case.

We have about 1,500km2 of exploration territory in each of the two countries and a survey would only take a few days. Rebecca would do the analysis as part of her normal work.

Posted Date: 3/6/2013 4:54:12 AM | Location : United States







Related Discussions:- Aeromag, Assignment Help, Ask Question on Aeromag, Get Answer, Expert's Help, Aeromag Discussions

Write discussion on Aeromag
Your posts are moderated
Related Questions
QUESTION i) Discuss the risk associated with changes in exchange rates. ii) How can these risks be managed internally? iii) Explain how a manager can use a forward contra

What is meant by Leverage? What are its different types? With what type of risk is associated with each type of leverage. (Explain with illustration)

The managing directors of three profitable listed companies discussed their companies' dividend policies at a business lunch. Company A ; has deliberately paid no dividends for

Q. How are the HIBOR, HSI and HSI futures related? The HIBOR and HSI are contrariwise related. So futures on HIBOR and HSI are as well inversely related. Display

Corporates generally raise funds from the Inter Corporate Deposit (ICD) markets. These instruments generally carry interest rates higher than the other short-term

Advantages and disadvantage of pacipatory style of budgeting

Q. Explain about Invoice discounting? Invoice discounting is a technique which is able to be used to raise finance against receivables. Invoice discounting works as follows:

Q. Trouble in Determination of Cost of Capital? Trouble in Determination of Cost of Capital:- 1. Historic Cost as well as Future Cost: - One main problem in the determinatio

A company is expected to pay a dividend of D1 = $1.25 per share at the last of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future.

Q. What do you mean by Time value of money ? The concept of TVM refers to the fact that the money received today is different in its worth from the money receivable at some oth