The Mining Valuation Handbook: Mining and Energy Valuation for Investors and Management, 4th Edition
by Victor Rudenno
Chapter 15: Share price performance and real options
Future movements in the share price for a resources company will be the result of the influence of many financial and operating parameters, both real and perceived. The time frame considered is important. For example, issues such as commodity prices and exploration announcements will influence price movements on a day-to-day basis. In the longer term, the change in fundamental value will dictate the overall direction of the share price. The fundamental value, in turn, will be influenced by longer term trends in commodity prices and management’s ability to find and develop economic deposits.
On a macro scale the most important of these issues are evident in the following forms:
• Earnings ...
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