Vale S.A.: Cobalt Streaming
ABSTRACT The case “Vale S.A. — Cobalt Streaming” describes a transaction that has taken place at Vale, a Brazilian mining company, and one of the most important in its segment. The transaction was developed to de-risk an important project for an expansion of a mine in the province of Newfoundland &a...
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ftsmithonian:oai:figshare.com:article/14320893 2023-05-15T17:22:23+02:00 Vale S.A.: Cobalt Streaming Flavia D'Albergaria Freitas (10471044) Carlos Heitor Campani (6379457) Viktor Nigri Moszkowicz (10471047) Raphael Moses Roquete (6379451) Flavia Schwartz Maranho (10471050) 2020-12-01T16:01:41Z https://doi.org/10.6084/m9.figshare.14320893.v1 unknown https://figshare.com/articles/dataset/Vale_S_A_Cobalt_Streaming/14320893 doi:10.6084/m9.figshare.14320893.v1 CC BY 4.0 CC-BY Business and Management not elsewhere classified streaming project valuation risk/return teaching case Dataset 2020 ftsmithonian https://doi.org/10.6084/m9.figshare.14320893.v1 2021-04-11T16:11:37Z ABSTRACT The case “Vale S.A. — Cobalt Streaming” describes a transaction that has taken place at Vale, a Brazilian mining company, and one of the most important in its segment. The transaction was developed to de-risk an important project for an expansion of a mine in the province of Newfoundland & Labrador in Canada. By streaming the cobalt production, Vale was able to get a competitive internal rate of return for the project compared to the lower level of risk the project would then offer. The case detailed the negotiation since the beginning until the company faced the challenge of choosing from the final proposals. The case allows the discussion of important aspects regarding project valuation: risk mitigation through the streaming negotiation, several different types of risk influencing the main issue of the case, decisions about the assumptions used, discussion about debt/equity characteristics on the overall project from Vale’s perspectives, and the evaluation of a project with non-conventional cash flow, given a substantial upfront revenue due to the streaming contract. So, the case is recommended for the disciplines of Financial Management, Project Valuation, or Risk Analysis in post-graduate courses of Business Administration and Finance. Dataset Newfoundland Unknown Newfoundland Canada |
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ftsmithonian |
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Business and Management not elsewhere classified streaming project valuation risk/return teaching case |
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Business and Management not elsewhere classified streaming project valuation risk/return teaching case Flavia D'Albergaria Freitas (10471044) Carlos Heitor Campani (6379457) Viktor Nigri Moszkowicz (10471047) Raphael Moses Roquete (6379451) Flavia Schwartz Maranho (10471050) Vale S.A.: Cobalt Streaming |
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Business and Management not elsewhere classified streaming project valuation risk/return teaching case |
description |
ABSTRACT The case “Vale S.A. — Cobalt Streaming” describes a transaction that has taken place at Vale, a Brazilian mining company, and one of the most important in its segment. The transaction was developed to de-risk an important project for an expansion of a mine in the province of Newfoundland & Labrador in Canada. By streaming the cobalt production, Vale was able to get a competitive internal rate of return for the project compared to the lower level of risk the project would then offer. The case detailed the negotiation since the beginning until the company faced the challenge of choosing from the final proposals. The case allows the discussion of important aspects regarding project valuation: risk mitigation through the streaming negotiation, several different types of risk influencing the main issue of the case, decisions about the assumptions used, discussion about debt/equity characteristics on the overall project from Vale’s perspectives, and the evaluation of a project with non-conventional cash flow, given a substantial upfront revenue due to the streaming contract. So, the case is recommended for the disciplines of Financial Management, Project Valuation, or Risk Analysis in post-graduate courses of Business Administration and Finance. |
format |
Dataset |
author |
Flavia D'Albergaria Freitas (10471044) Carlos Heitor Campani (6379457) Viktor Nigri Moszkowicz (10471047) Raphael Moses Roquete (6379451) Flavia Schwartz Maranho (10471050) |
author_facet |
Flavia D'Albergaria Freitas (10471044) Carlos Heitor Campani (6379457) Viktor Nigri Moszkowicz (10471047) Raphael Moses Roquete (6379451) Flavia Schwartz Maranho (10471050) |
author_sort |
Flavia D'Albergaria Freitas (10471044) |
title |
Vale S.A.: Cobalt Streaming |
title_short |
Vale S.A.: Cobalt Streaming |
title_full |
Vale S.A.: Cobalt Streaming |
title_fullStr |
Vale S.A.: Cobalt Streaming |
title_full_unstemmed |
Vale S.A.: Cobalt Streaming |
title_sort |
vale s.a.: cobalt streaming |
publishDate |
2020 |
url |
https://doi.org/10.6084/m9.figshare.14320893.v1 |
geographic |
Newfoundland Canada |
geographic_facet |
Newfoundland Canada |
genre |
Newfoundland |
genre_facet |
Newfoundland |
op_relation |
https://figshare.com/articles/dataset/Vale_S_A_Cobalt_Streaming/14320893 doi:10.6084/m9.figshare.14320893.v1 |
op_rights |
CC BY 4.0 |
op_rightsnorm |
CC-BY |
op_doi |
https://doi.org/10.6084/m9.figshare.14320893.v1 |
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1766109014626664448 |