Risk Analysis Of Investment Project For Gold Mining In Russia

In the last few years, with the development of Russian economy, gold industry and consideration of investment risk in the project of gold mining, gold mining occupies an important position in an industry strategy of Russia economy. Gold not only has the function of currency reserves, but each year it increases the level of industrialization of the country.As Russian resources of gold mining are very rich and the gold mining industry develops rapidly, that’s why gold is an important base for the Russian economy. Currently, in order to promote national economic development, Russia has implemented several economic reforms. And so gold mining is one of the most important factor for the stable functioning of the economic and financial order.In this article the findings of the study of risk assessment techniques in investment project on gold mining was performed in the following steps:First, this degree work describes the characteristics of the gold investment project risk. Because the gold investment project is one of the most profitable projects, the higher the profits of investment projects, investment project risk is also higher. The risk of investment is the largest inflation risk in the project. Inflation will not only influence during the process of project before the investment profit, but also in the whole course of the realization of investment projects. Moreover, production risk in gold investment project is one of the very heavy risk. In recent years, gold mines have not fell sharply, which is rare in the field of ore mining. Finally, gold investment belong to long-term investment projects, because investment cycle is long, so the project risk is very big.This degree work apply investment project budget performance evaluation method, business investment project benefit evaluation method, finally apply Sensitivity analysis to evaluate the influence of investment risks.This defree work research results is:by calculating the investment project budget and business benefits, and then judge whether budget and business benefits more than the bottom line. If the budget and business benefits more than the bottom line, it says the gold investment is profitable. And the government and the investors will be interested in the project. But, by the calculating method of sensitivity analysis, the gold investment projects belong to the high risk project, each uncertainty factors affect the net present value of the investment projects and to evoluate. Therefore, if the government not to invest risk agency system reform, the project cost risk is likely to exceed its profits.