Isn't bigger always better? Applying Economic Profit to Exploration Management

Project managers aim to maximise the NPV of their projects, but don't always appreciate the relationship between mine throughput, project value and the discount rate being used to evaluate their projects. Rate of production or throughput is perhaps one of the most crucial decisions a project manager must make, but if this choice is made arbitrarily, much effort may be spent on a feasibility study that does not optimise project value. The timing of the study in relation to the stage of exploration is examined and simple techniques are presented that project engineers and managers can use to home in on a production rate which will give their project the greatest chance of success.