Investment Strategies of Mining Companies under Conditions of Uncertainty

Investment strategy is a key part of the development of any company. It is based on the prediction of markets, investment climate and accordingly, in the conditions of changes requires periodic adjustment. Traditional methods of evaluation of investment strategy do not take into account the activity in decision-making, management flexibility and possible competitive advantages. The method that allows you to evaluate investment strategic decisions in conditions of uncertainty is the method of real options. This method gives the possibility to calculate the value which makes the active control. In our opinion the apparent complexity of the theory of real options reduces the popularity of the latter among practitioners significantly. In the course of the study there is proposed the model that allows an adequate assessment of multi-stage investments in the conditions of uncertainty caused by sanctions pressure. The advantages of the real options method are demonstrated and an algorithm of practical application based on the binomial valuation method is offered.