Net Present Value Method And Real Options Method In Comprehensive Application In Mining Right Evaluation

As the development of the economy, the demanding of the mineral resources from China domestic is constantly increasing, Contradiction between supply and demand is becoming more and more outstanding. Although types of mineral resources in China, large reserves, because of large population base of China, as a result, mineral resources of per people is very low. We should take fit action to utilize and use the mineral resources, and reduce the waste of resources. Therefore, establishing and improving the transaction platform of mining right market in China is essential to assess the value of mineral right. In developed countries from west world, the mining right market is not clear in China, the existing evaluation methods can’t solve the problems. Based on this background, We put forward combination net present value method with real options method to apply in characteristics of extension mines, To make fit assess value of mining right.In mining right valuation methods, the most widely used is net present value method, because it considers the time value of money, length of service within the total net cash flow and investment risk, this method become widely application. But this method flexibility is poorer, rigid and nature does not fit in with the option of mine. Problem of this article is to solve the evaluation of expansionary minerals, combining net present value method with real options method to apply in characteristics of extension mines. If you only use a single net present value method can not reflect the expansionary options of miner, using real option method is single and can’t reflect the real asset of mine. So, this paper integrated the advantages of two methods, finally uses the combined two methods to evaluate expansionary qualitative mines.This article elaborates the main content is divided into five parts:The first part introduces the background of this paper, significance, research ideas and research methods; The second part introduces the related theory knowledge of mining right, analysis and comparison of common methods; The third part according to the characteristics of the mining right, and puts forward the net present value method and the real option method is suitable for the mine, and comparative analysis on these two methods; The fourth part of the empirical analysis, verifying the rationality of combination of the two methods, a coal mine in Yunnan as a case analysis; The fifth part of this article summarized, and the prospect of research in this paper.