Development of a model for financing the mining companies accepted in the Exchange in order to increase NPV

Document Type : Research Article

Authors

Department of Mining Engineering, Amirkabir University of Technology, Tehran, Iran

Abstract

Financing the mining projects is one of the issues against investors at different stages of the project. There are several options for financing mining projects and each of them has its properties. The rate of using these choices depends on the plan’s circumstance and investors’ Preferences. In the present study, after identifying the criteria affecting the NPV of mining companies, with the help of a questionnaire and using the Delphi technique, five criteria of refund mechanism, the volume of capital, interest rates, access costs, and risks, were selected as the main criteria for studying different financing alternatives (including stock exchange, sukuk, banks and financial and credit institutions, internal capital, and foreign bank). Since these criteria are not independent and the dependency between them affects the choice of financing method and as a result the goal of this research, the method of Analytical Network Process (ANP) was used and the relative weight of each criterion is obtained. In the next step, according to the mentioned criteria and determining the impact of each on the NPV of mining companies, the alternatives should be prioritized in such a way as to achieve the highest NPV. The findings of the research show that foreign banks with a final relative weight of 0.398 is the best option. After that, the use of internal capital with a relative weight of 0.217, sukuk with a final relative weight of 0.161, the stock exchange with a final relative weight of 0.138, and finally, internal banks with a final weight of 0.086 are the most appropriate methods, respectively.       

Keywords

References

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Amirkabir Journal of Civil Engineering
Volume 55, Issue 9
December 2023
Pages 1883-1908

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