Research On Evaluation Of X Company Dealing With Polymetallic Ore Loan Project

With the continuous development of China’s financial industry, banking supervision is more and more important. Since the U.S. subprime mortgage crisis, the supervision of global credit has become the focus of the study. Once the credit risk break out largely, it will bring a fatal blow to the development of the national economic, and will bring some negative impact to the social order. Since the establishment of market economy in China, Chinese government focus on developing the financial industry and banking sector is now prosperity. As the financial industry prospered, competition in banking industry followed. In order to expand banking industry, attract reliable customers, some banks increased the proportion of subprime loans. In addition to over-expanding loaning, which caused the increase of non-performing loans, the lack of critical assessment of the loan project is also an important factor. Therefore, to evaluate the loan projects, to monitor the project’s own credit risk and even to control the bank risk has positive significance.In recent years, with the continuous improvement of productivity, China’s metal processing industry is developing rapidly. The development is a great support to metal needed in our national economic development. X Company is a copper cathode production-based integrated group enterprise which concentrates on the refine of gold, silver, platinum, palladium, selenium and other rare metals. In order to expand the enterprise, X Company decided to implement the project on the multi-metal refine, and ask Y bank and other commercial banks for loans. In this paper, the author use the perspective of Y bank to evaluate the project of X company and other aspects of the situation, so as to make clear the project’s feasibility and risk, and ultimately use it as a basis for Y bank loans. Meanwhile, it provides an approach to reduce the project risk and to insure the profit. This paper is divided into the following sections:Firstly, the author reviews the assessment of the related projects home and abroad, summarizing both the main conclusions and the inadequateness of the study. Also, the author discussed the problem from the definition of the project evaluation, project evaluation and the feasibility of the project, and the principles of project evaluation. The author aims at making a brief and summarized introduction to assessment of the project.Secondly, the author introduces the situation of X Company and how it dealt with its loan of multi-metal project. According to the main contents of project evaluation, combined with the real situation in which X Company handling loan projects of polymetallic, the author set an evaluation system which suits the project and its contents. The above is the basis of further assessment of the project, and should be controlled in all aspects. The contents inclueds the esentiality of the assessment, the production conditions and technical conditions, management, market power, financial evaluation, social benefits of the product, bank risk of the project. After assessing all these, the author found X Company is qualified in all aspects.Finally, based on the assessment of all aspects of the project, according to SWOT analysis, the bank has to see the overall situation of the project microscopically. It has to point out clearly the advantages, disadvantages, chances and challenges of X company’s project and ultimately provide advice from three levels, the state, the banks and the enterprises. Form the national level, the government should gradually increase the cooperation with international metals industry, looking for the stable cooperation of the metal raw materials, so as to move forward from develop bottlenecks of the raw materials of metallurgical industry. Specifically, government can sign stable contracts, providing protection for the metallurgy industry. Form Y bank, the author provides advice on project supervision and the risk as well as early warning program. From X company, which is the focus of the project, the author think it can set up a perfect plan, in order to ensure that the profit, and provide the opportunity for development.