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Antamini Simulation Model

By: Peter Tufano
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Abstract

Antamini is a simulation of the value of an investment project whose outcome is uncertain. This case describes the situation facing a natural resource firm as it contemplates bidding on a copper mine in Peru. The bidder faces uncertainties about the ore deposit size and copper prices as well as a peculiar set of bidding rules set up by the Peruvian government. The model is a simplified and stylized representation of the actual problem facing the bidder. Uses Crystal Ball (CB), an Excel Add-In, to simulate the uncertainty facing the bidder, using Monte Carlo analysis. The instructions for downloading, installing, and running the model are included.

Keywords

Valuation; Auctions; Investment; Mining; Mining Industry; Peru

Citation

Tufano, Peter. "Antamini Simulation Model." Harvard Business School Background Note 203-083, February 2003. (Revised October 2004.)

About The Author

Peter Tufano

Finance
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