scholarly journals Determinants of Interest Rates on Corporate Bonds of Mining Enterprises

2017 ◽  
Vol 62 (3) ◽  
pp. 621-637
Author(s):  
Robert Ranosz
Keyword(s):  
Interest Rates ◽  
Foreign Capital ◽  
Raw Materials ◽  
Corporate Bonds ◽  
Mining Industry ◽  
Rating Agencies ◽  
The Interest Rate ◽  
The Cost ◽  
The Given ◽  
Significant Factors

AbstractThis article is devoted to the determinants of interest rates on corporate bonds of mining enterprises. The study includes a comparison between the cost of foreign capital as resulting from the issue of debt instruments in different sectors of the economy in relation to the mining industry. The article also depicts the correlation between the rating scores published by the three largest rating agencies: S&P, Moody's, and Fitch. The test was based on simple statistical methods. The analysis performed indicated that there is a dependency between the factors listed and the amount of interest rates on corporate bonds of global mining enterprises. Most significant factors include the rating level and the period for which the given series of bonds was issued. Additionally, it is not without significance whether the given bond has additional options. Pursuant to the obtained results, is should be recognized that in order to reduce the interest rate on bonds, mining enterprises should pay particular attention to the rating and attempt to include additional options in issued bonds. Such additional options may comprise, for example, an ability to exchange bonds to shares or raw materials.

scholarly journals Determination of the transfer step of the ore chute while mining the technogenic deposit of the bulk type

2020 ◽  
Vol 166 ◽  
pp. 02004
Author(s):  
Volodymyr Peregudov ◽  
Ihor Hryhoriev ◽  
Serhii Joukov ◽  
Yulian Hryhoriev
Keyword(s):  
Raw Materials ◽  
Mining Industry ◽  
Process Conditions ◽  
Geological Conditions ◽  
Scientific Task ◽  
Technogenic Deposit ◽  
Mining Works ◽  
The Cost

Further development of the open mining works on the domestic enterprises will be accompanied by the worsening of mining-geological conditions and declining of the quality of iron ore raw materials. In the same time, the accumulated mining wastes, that can make the technogenic deposits, pass into one of the important sources of the mineral raw materials. Taking into account this thing, the development and implementation of the modern technological circuits of the technogenic deposit development is an actual calling for mining industry, and determination and optimization of process conditions of the technogenic deposit development – is the scientific task of this publication. The obtained results of studies of the optimum step value of the ore chute transfer during the technogenic deposit development can be used by design organizations and mining enterprises for designing works. The obtained methodology and the proposed mathematical dependencies will reduce the cost of mining of the technogenic deposit due to the reasonable timely transfer of the open ore chute.

scholarly journals ANALYSIS OF THE HOUSING MARKET IN LITHUANIA

2008 ◽  
Vol 12 (4) ◽  
pp. 271-280 ◽  
Author(s):  
Feliksas Ivanauskas ◽  
Rimantas Eidukevičius ◽  
Albinas Marčinskas ◽  
Birutė Galinienė
Keyword(s):  
Financial Markets ◽  
Interest Rates ◽  
Housing Market ◽  
Supply And Demand ◽  
Economic Factors ◽  
Causality Tests ◽  
The One ◽  
The Cost ◽  
The Given ◽  
The Relationship

Cointegration and Granger causality tests were used for the statistical analyses of the housing market in Lithuania. The relationship between the cost of housing and afford‐ability on the one hand, and interest rates, GDP and average incomes on the other was not proven to exist using the given statistical methods. The period of increase in the cost of housing in Lithuania over the last five years is exceptional and difficult to explain using fundamental economic factors and their fluctuation trends alone. The cost of housing has made a clear departure from the economic (business) cycle; the economy has grown, however at a much slower rate than rising costs in the housing market. The reasons for this situation are record lows in interest rates, good conditions to gain financing, the liberalisation of financial markets, speculative attitudes in expectation of the introduction of the Euro, and a divide between the supply and demand of housing that is available. It should be noted that the evaluation of the influence of these factors on fluctuations in costs in the housing market is more hypothetical in nature. Santrauka Nekilnojamojo turto rinkos Lietuvoje statistinei analizei buvo naudojami kointegravimo ir Grangerio priežastingumo testai. Taikant esamus statistinius metodus nebuvo įrodyta, kad egzistavo ryšys tarp nekilnojamojo turto kainos ir įperkamumo, viena vertus, ir palūkanų normų, BVP bei vidutinių pajamų, kita vertus. Nekilnojamojo turto kainos Lietuvoje didėjimo per pastaruosius penketą metų laikotarpis yra išskirtinis ir sunkiai paaiškinamas remiantis vien pagrindiniais ekonominiais veiksniais ir jų svyravimų tendencijomis. Nekilnojamojo turto kaina aiškiai nukrypo nuo ekonomikos (verslo) ciklo; ekonomika išaugo, tačiau gerokai lėtesniu tempu nei augančios kainos nekilnojamojo turto rinkoje. Šios situacijos priežastys – rekordiškai mažos palūkanų normos, geros sąlygos gauti fi nansavimą, fi nansų rinkos liberalizavimas, spekuliaciniai požiūriai tikintis įsivesti eurą ir takoskyra tarp esamo nekilnojamojo turto pasiūlos ir paklausos. Pažymėtina, kad šių veiksnių įtakos kainų svyravimo nekilnojamojo turto rinkoje įvertinimas yra labiau hipotetinis.

Korean Treasury Bond Futures Pricing Model

2004 ◽  
Vol 12 (1) ◽  
pp. 1-22
Author(s):  
Youngsoo Choi ◽  
Se Jin O ◽  
Jae Yeong Seo
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Market Price ◽  
Alternative Methods ◽  
Vasicek Model ◽  
Market Participants ◽  
Treasury Bond ◽  
Cost Of Carry ◽  
The Interest Rate ◽  
The Cost

This paper proposes two alternative methods which are used for pricing the theoretical value of the KTB futures on the non-traded underlying asset; first method is to use the CKLS model, under which the volatility of interest rate changes is highly sensitive to the level of the interest rate, and then employ binomial trees to compute the theoretical value of futures, second one is to use the multifactor Vasicek model considering correlations between yields-to-maturity and then employ the Monte Carlo simulation to compute it. In the empirical study on KTB303 and KTB306, an CKLS methodology is superior to the conventional KORFX method based on the cost-of-carry model in terms of the size of difference between market price and theoretical price. However, the phenomena, the price discrepancy using the KOFEX methodology is very small for all test perlod, implies that the KOFEX one is being used for the most market participants. The reasons that an multifactor Vasicek methodlogy is performed poorly in comparison to another methods are 1) the Vasicek model might be not a good model for explaining the level of interest rates, or 2) the important point considered by the most market participants may be on the volatility or interest rate, not on the correlations between yields-to-maturity.

scholarly journals Using Expected Geometric Values to Calculate the Cost of Interest in Hyper-inflationary Environments: the Case of Venezuela

2019 ◽  
Vol 2 (2) ◽  
pp. 10-21
Author(s):  
J. Tim Query ◽  
Evaristo Diz Cruz
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Expected Value ◽  
Defined Benefit ◽  
High Inflation ◽  
Defined Benefit Plans ◽  
The Interest Rate ◽  
The Cost ◽  
The Impact ◽  
The Relationship

It is of vital importance to explore the relationship between pensions and inflationary levels because this forms a link between social policy and economic development in the context of Venezuela’s challenging economy and its impact on the development of pension systems. With such rampant inflation, companies must adjust the rates of salary increases to avoid a significant decrease in the purchasing power of income from defined benefit plans. Our research seeks to find the possibility of using an average geometric rate of future interest rates expressed as an expected value to discount obligations. Consequently, the cost of interest associated with the actuarial liability of the Benefit plans increases substantially in the next fiscal period to the actuarial valuation, sometimes compromising its sustainability over time. In order to minimize this problem, two scenarios for calculating the interest rate are proposed to smooth out this volatile effect; both are based on a geometric average with the expectation of working life or with the duration of the obligations. We are careful to use a reasonable interest rate that is not so high as to compromise the cash flow, resulting in skewed annual results of the companies. Our research seeks to find the possibility of using an average geometric rate of future interest rates expressed as an expected value to discount obligations. We formulate and actuarially evaluate two different scenarios, based on job expectations and Macaulay's duration, of the obligations that allow the sustainability of the plan in an environment of extremely high inflation. To illustrate the impact of the basic annual expenditure of the period, the results of an actuarial valuation of an actual Venezuelan company were utilized. Despite some companies adjusting their book reserves increasingly through a geometric progression, the amounts associated with the costs of interest would be huge in any such adjustment pattern. Therefore, we suggest adoption of one of the alternatives described in the research.

Functional model for the synthesis of nanostructures of the given quality level

2021 ◽  
Vol 2 (107) ◽  
pp. 72-84
Author(s):  
Y.O. Suchikova ◽  
S.S. Kovachov ◽  
G.O. Shishkin ◽  
D.O. Pimenov ◽  
A.S. Lazarenko ◽  
...  
Keyword(s):  
Raw Materials ◽  
Functional Model ◽  
Quality Level ◽  
Factors Affecting ◽  
Functional Modelling ◽  
Tunable Properties ◽  
Time Required ◽  
The Cost ◽  
The Given ◽  
Synthesis Of Nanostructures

Purpose: The aim of this paper is to develop a functional model for the synthesis of nanostructures of the given quality level, which will allow to effectively control the process of nanopatterning on the surface of semiconductors with tunable properties. Design/methodology/approach: The paper uses the IDEF0 methodology, which focuses on the functional design of the system under study and describes all the necessary processes with an accuracy sufficient for an unambiguous modelling of the system's activity. Based on this methodology, we have developed a functional model for the synthesis of nanostructures of the given quality level and tested its effectiveness through practice. Findings: The paper introduces a functional model for the synthesis of nanostructures on the surface of the given quality level semiconductors and identifies the main factors affecting the quality of nanostructures as well as the mechanisms for controlling the formation of porous layers with tunable properties. Using the example of etching single-crystal indium phosphide electrochemically in a hydrochloric acid solution, we demonstrate that the application of the suggested model provides a means of forming nanostructures with tunable properties, assessing the quality level of the nanostructures obtained and bringing the parameters in line with the reference indicators at a qualitatively new level. Research limitations/implications: Functional modelling using the IDEF0 methodology is widely used when process control is required. In this study it has been applied to control the synthesis of nanostructures of the given quality level on the surface of semiconductors. However, these studies require continuation, namely, the establishment of correlations between the technological and resource factors of synthesis and the acquired properties of nanostructures. Practical implications: This study has a significant practical effect. Firstly, it shows that functional modelling can reduce the time required to form large batches of the given quality level nanostructures. This has made it possible to substantiate the choice of the initial semiconductor parameters and nanostructure synthesis modes in industrial production from the theoretical and empirical perspective. Secondly, the presented methodology can be applied to control the synthesis of other nanostructures with desired properties and to reduce the expenses required when resources are depleted and the cost of raw materials is high. Originality/value: This paper is the first to apply the IDEF0 methodology to control the given quality nanostructure synthesis. This paper will be of value to engineers who are engaged in the synthesis of nanostructures, to researchers and scientists as well as to students studying nanotechnology.

scholarly journals Bulgarian Mining Industry between Tradition and Innovation

2020 ◽  
Vol 174 ◽  
pp. 01026
Author(s):  
Aneta Deneva ◽  
Jānis Grasis
Keyword(s):  
Economic Activity ◽  
Foreign Capital ◽  
Raw Materials ◽  
Mining Industry ◽  
Metal Industry ◽  
Direct Participation ◽  
The Law

Extractive activities are traditional for the Bulgarian economy and are part of the economic activity of the population since the establishment of the Bulgarian state. As an autonomous sector of the economy, they are approved after 1878. The initial extractive activities are carried out with the direct participation of foreign capital, mainly French, German and Belgian. The extraction of raw materials has always been among the priority economic areas. Not surprisingly with the first economic laws adopted by the Bulgarian Government is supported its development. A typical example in this respect is the law on the promotion of the local industry since 1909. Among the promotion activities are mining, metal industry, as well as the quarry and that for the processing of soil materials. The mining industry is an indispensable part of the structure of the Bulgarian economy, regardless of its transformations.

scholarly journals Optimization of the Perfumery Industry Production Process with the Replacement of Raw Material

2019 ◽  
Vol 7 (11) ◽  
pp. 970-979
Author(s):  
Diógenes Quéops De Jesus Guimarães Suzuki ◽  
David Barbosa de Alencar ◽  
Alexandra Priscilla Tregue Costa ◽  
Manoel Henrique Reis Nascimento
Keyword(s):  
Raw Materials ◽  
Lean Production ◽  
Cost Benefit ◽  
Raw Material ◽  
Viable Option ◽  
Ecological Awareness ◽  
Research Theme ◽  
The Right ◽  
The Cost ◽  
The Given

The present work tends to investigate the lean production through the materials needed for the manufacture of perfumery products (cologne, deo cologne, eau de toilette), reduce its costs significantly, by proposing coherent substitutions to those used regularly, bringing improvements and productivity with the help of Kaizen tools. According to this comparison between inputs and their possible substitutes, all their processing and production are decisive for a more viable option according to the research theme and the viability of lean production in the most varied types of products, in the field of perfumery. In the differences between the given raw materials and the cost benefit, it is possible to promote higher productivity, without changing the performance of the products, even if there is a slight oscillation, but fulfilling the right role to the consumer, enhancing the ecological awareness and generating greater profitability.

scholarly journals Foreign Enterprises in the Siberian Economy

2019 ◽  
Vol 33 (2) ◽  
pp. 124-131
Author(s):  
Natalia Sysoeva
Keyword(s):  
Foreign Investment ◽  
Foreign Capital ◽  
New Technologies ◽  
Raw Materials ◽  
Mining Industry ◽  
Asia Pacific ◽  
Asia Pacific Region ◽  
Capital Costs ◽  
High Level ◽  
Foreign Enterprises

The purpose of the article is to identify the spatial character of foreign investment in Siberia where a considerable part of Russian export goods is produced for the markets of Europe and the Asia-Pacific region. A microeconomic approach was used, and the types and activities of enterprises with foreign capital were analysed. The main features were presented: the predominance of offshore investments, officially identified as foreign investment in the basic industries; increase in the share of investment into the mining industry and increasing dependence on China when moving east; high level of individual’s investment in services with fast capital turnover and minimal capital costs which forms a specific survival environment in the border areas with Mongolia and China. Three patterns of foreign investment in the Siberia are identified – western, central and eastern. The western pattern is characterised by a diversity of donor countries and investment in processing industries, the central one is based on the offshore capital in energy and semi-product industries, and in the eastern pattern investment into mining and logging prevails. The last type of investment is not receptive to innovations and new technologies, conserves and deepens the resource specialisation of industry for Asian markets of raw materials.

scholarly journals The Raw Materials Convertible into Bonds

2016 ◽  
Vol 32 (2) ◽  
pp. 79-94
Author(s):  
Robert Ranosz
Keyword(s):  
Raw Materials ◽  
Mining Industry ◽  
Mineral Resources ◽  
Convertible Bonds ◽  
Economic Effects ◽  
Bank Loans ◽  
Raw Material ◽  
Bank Loan ◽  
New Instrument ◽  
The Cost

Abstract This article is dedicated to the instrument such as raw materials convertible bonds, the application of which in the mining industry can increase the efficiency of mining investments and, consequently, contribute to the improvement of the economic and financial market of mineral resources. Bonds with the option of conversion into raw materials bring relevant benefits to both the investor – the bondholder who buys these bonds, and to the mining company as the issuer. The use of this debt instrument increases the efficiency of mining investments, mainly by lowering the cost of capital in relation to traditional sources and by flexibility of being able to convert the capital debt into raw materials. Due to the fact that the article is illustrative only, and its goal is just to present a relatively new instrument, which are raw materials convertible bonds, the author focused an attention on its possible use in the financing of investments in the mining industry and the potential economic effects of such a solution. In order to identify the likely financial benefits, discussed debt instrument was compared with selected sources of funding, such as ordinary bonds and simple bank loan. Due to this fact, the article doesn’t present the consideration of every aspect associated with the bond that has an option, but is mainly focused on its main attribute, which is the ability to convert debt into raw material. The paper presents the general assumptions regarding the raw materials convertible bonds, the advantages of this solution and the requirements that the issuer of such instrument will have to cope with. The article contains also a diagram showing the use of a raw materials convertible bonds in the tripartite agreement. The final part of the publication shows an example of a calculation comparing the newly presented instrument to the ordinary bonds and bank loans. The summary presents the conclusions of the analysis of the possible use of raw materials convertible bonds as an instrument of financing investments in the mining industry.

scholarly journals Fund Matching between Fund-Raisers and Investors in Financing Platform with Consideration of Default Risk

2021 ◽  
Vol 2021 ◽  
pp. 1-8
Author(s):  
Kenan Li ◽  
Xin Li ◽  
Zhijun Lin ◽  
Jing Lu ◽  
Pak Hou Che
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Default Risk ◽  
Random Variable ◽  
Expected Profit ◽  
General Distribution ◽  
Time Interval ◽  
The Interest Rate ◽  
The Cost ◽  
Fund Raiser

We construct a stochastic model to study the fund matching between fund-raisers and investors in a financing platform. The raising time is assumed to be a random variable. Then, there is a successful transaction probability that the fund matching is realized. Meanwhile, the interest and the commission rate that the platform earns affect the value of the probability. The platform maximizes its revenue by adjusting the commission rate. We find that the optimal commission rate decreases in investment time. However, when the time interval between two adjacent investments obeys the general distribution, the optimal commission rate increases in the annual interest rate. Besides, we extend the model into a duopoly case in which two fund-raisers compete for customers in the same platform by deciding their own interest rate. Due to lacking competition, the optimal interest rate in the monopoly case is lower than that in the duopoly case. Because the interest rate is the cost for the fund-raiser, the expected profit of the fund-raiser in the monopoly is higher than the expected profit of each fund-raiser in the duopoly case but lower than the total expected profit of two fund-raisers. The platform should choose some small loans as far as possible. The loans with smaller amount are easier for the platform to complete fundraising. For those large loans, the platform should try to ask for higher interest rates or more sufficient time to raise funds.

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