EME 460
Geo-Resources Evaluation and Investment Analysis




This course deals with mineral and oil project evaluation and investment decision-making. We will start by introducing the process of investment decision-making and the compound interest rate method. To make an investment decision, one needs to experience the processes of defining the problem, analyzing the problem, developing alternative solutions, deciding upon the best solution and converting the decision into effective action.

Then, in Lesson 1, the compound interest rate will be covered. Using the compounding method, we can select the appropriate factors to calculate the future value, current value, and the annual value.

One goal of this course is the application of project evaluation methods in the mining and oil industry. Besides the evaluation techniques, this lesson will cover some background and knowledge about the mining and oil industries, through readings of news and papers.

Learning Objectives

At the successful completion of this lesson, students should:

  • understand the processes of investment decision-making;
  • understand how to use compounding interest rates to calculate present, future, and annual values;
  • understand how to apply the evaluation techniques in the mining and oil industry; and
  • understand how to use Microsoft Excel for the calculations.

What is due for Lesson 1?

Lesson 1: Reading and Assignment
Reading Chapter 1 of the textbook by Stermole.

Go through the Syllabus, Orientation, and Lesson 1 on the website.
Prepare for Homework 1.


If you have any questions, please post them to the discussion forum, located under the Modules tab in Canvas. The TA and I will check that discussion forum daily to respond. While you are there, feel free to post your own responses if you, too, are able to help out a classmate.