Risk of Exploration Activities

Even though a large amount of tonnage has been discovered through exploration activities, its economic value is highly dependent on metal prices, ore content, metallurgical properties, mining conditions, operating costs and capital expenditure for development and the location of prospective customers. Therefore, there is a possibility of reserves that have no economic value which will ultimately affect the work plan and business prospects of the Company in the future.
The risk of falling mineral prices is the biggest challenge for every mining entrepreneur. Therefore, the ability of the business analysis unit to predict mineral prices is important.

Information about mineral price trends, the amount of production and demand for certain minerals, the production capacity of existing producers, and information on the amount of reserves internationally are essential ingredients for making mineral price predictions. This price prediction can also be used as a basis for management decision making for investment or divestment decisions.