A Discussion Of Income Way Evaluation Methods Of Mineral Property

The mining right assessment evaluation is choosing the proper method by the asset appraisalinstitution and appraisers in accordance with the provisions of national laws, regulations and relatedtechnical information, in order to determine the value of the mining right at a certain pointaccording to the evaluation objective and actual situation.We have six income approach methods to evaluate the assessment of mining rights：cash flowmethod (DCF method), the residual profit method, income rights method, discounted surplus cashflow method (DRCF method), adjustment cash flow risk factor method and equivalent investmentcash flow method. Although there are many assessment method, But the first three methods mostare widely used method in practice.When the mining right appraiser use of specific methods, humanjudgment facto will make the income approach to value assessment method facing great limitations.This is due that the differences in different mining right and the factors that effect mining rightvalue are often not considered comprehensive, the evaluation results appear distortion. Soresearching the evaluation method approaches of mining right to use flexible in the specificsituation are very important in our country,, and it has important significance for solving the aboveproblems existing in the evaluation process.In this paper, evaluated a mine with cash flow method, the residual profit method, and incomeequity method separately based on the large number of relevant research literature and the referenceZhejiang A County B fluorite mine assessment data. Then, I analysis the differences in the results ofthe assessment, analysis comprehensive of the current mineral assessment income approachassessment methods currently facing problems, and these problems put forward their views andsuggestions. Assessment methods for future mineral provide reference on the selection of reference.The main innovation of this paper are summarized as the following three points:Firstly, the paper introduce what should pay attention to when choose othe discount rate usingthe income approach combined with previous research literature and expert advice on the proposeddiscount rate chosenSecondly, the paper analysis the above three models through comparing the assessment ofpractical cases, to the, the defect of income way assessment methods and the applicability ofeach method are analyzed and discussed.Thirdly, ameliorate income approach methods using the real option pricing model...