Can Do Mining - Task 2

[Praying Colonel]

Does anyone have an insight as to how I should justify using a different percentile over another one for VaR or CTE?

[Roger Wilco]

Does anyone know if there are any additional costs to will be incurred even if the mine is not opened (other than the assays)?

[irana]

I have read all the previous discussions about task 2 and still don`t understand ``% where to mine``...any thoughts would be appreciated...

[TeeTeeJu]

Originally Posted by irana

I have read all the previous discussions about task 2 and still don`t understand ``% where to mine``...any thoughts would be appreciated...

"% when to mine" is the percentage of time the mine opens... meaning that the assays returned measurements that exceeded your "min to mine" requirements.

If you set your measurements too low, your mine will likely open 100% of the time. If you set your measurements too high, your mine will not open that often (maybe less than 10-20%?). If you open the mine all the time, CanDo may be subject to losses due to mining an inefficient mine (not that much gold). If you hardly ever open the mine, CanDo will always incur the expense of the assays but never have any revenue from gold sales.

So it is up to you to set the MTM requirements at a level that will have a reasonable expectation.

[sweetiepie]

var is higher from more assays due to the fact that interest>yield, and more assays means less moolah means more negative scenarios.

[Edward]

Originally Posted by sweetiepie

var is higher from more assays due to the fact that interest>yield, and more assays means less moolah means more negative scenarios.

heh, did you use "moolah" in your FA? I submitted mine yesterday and I was so tempted (as I was finishing up Task 7 at 2am in the morning) to refer to the Canadian dollar as the "loonie"

[irana]

I chose CTE(90) as one of my risk measures rather than using all CTE(x)...any thoughts on how I could explain my selection. The only reason I chose it was because it was between the the others ones, where lower x I believe mostly focuses on severity and higher on frequency. Please help

[irana]

In my past two attempts I chose CTE(95) as my first metric, then %end<0, then others (that was the order I used). But now I thinking of looking at %end<0 as the first risk metric, with lower number meaning lower possibility negative ending cash flow (selecting the scenarios with 50% or lower), then among the selected scenarios focusing on CTE(95) which measures the average loss. Any insights?