The Study On The Evaluation Of Pandong Coal Mining Right Based On Real Options Theory

Mining right evaluation plays a crucial ruler.Under the current new economy, it is necessary to find a reasonable way to evaluate mining right value.Because of the complexity and the particularity, mining right evaluation has significant differences. The source of these differences lie in the mining activity is uncertain. Mining change corporate cash flow according to the commodity price fluctuations and changes in cost and the uncertainty of mineral reserves.They make decision to decrease or expand the production scale, exit or restore, which Lead to the mining right has the characteristics of options.Traditional mining right evaluation ignored the option characteristic of the mining right as a franchise, which easily lead to not only distortion of evaluation results and cause the mining right person take resources mining at a lower price, but also hinder the transformation of the coal industry. Using real options method provides a new train of thought and opens up a more reasonable assessment.The panton coal mining right evaluation is introduced in this paper. Discounted cash flow method had some disadvantages. Secondly, the paper laid a theoretical foundation. Again, compared B-S model and the binary tree model applicability, the article established the binary tree model. The analysis of the mining right evaluation activities. Then calculated option value of panton coal mining right with determined parameters. Finally, through the single factor sensitivity analysis, the rationality of the results is verified.The innovation of this paper mainly included two points. Theoretically, it pointed the shortage of DCF model and the option characteristics of mining right, also it confirmed for the uncertainty of the larger mining right valuation, then the real option pricing model is adopted to a more reasonable and scientific the evaluation. From the perspective of practice, the paper combined with the case of panton coal mining right evaluation and built the real option pricing model, which provides guiding principle for mining right valuation.