Research On The Evaluation Of Overseas Mining Rights Based On Real Options

Since the implementation of the major “Belt and Road” initiatives,China has continuously made new progress in the process of bilateral and multilateral regional economic cooperation with the“Belt and Road”countries.China's mining companies have increased their “going out” under the “Belt and Road” initiative The pace of"actively and proactively seeks cooperation with neighboring countries and regions of the "Belt and Road".Investment in mineral resources projects is increasing.M&A activities of mining companies are also becoming more frequent.The valuation of mining rights is in demand in economic activities.constantly improving.The prerequisite for the steady development of the mining rights market is whether the value of the mining rights can be more fairly,justly and reasonably evaluated.Overseas mining rights investment is relatively risky,and traditional methods cannot accurately overcome the uncertainties in overseas investment.In addition,there are few domestic scholars' research on the valuation of mining rights involving mining companies involved in overseas investment,so this article will go through the transnational background The real option method below evaluates the value of mining rights involved in overseas investment,hoping to play a rich and complementary role in the evaluation of the value of mining rights in economic activities involving cross-border investment in mineral resources.This article expounds and analyzes the factors influencing the value of overseas mining rights from three aspects: natural factors,economic factors,and social factors.Combining these factors to the uncertainty of the value of mining rights,the flexibility of mining rights management and its own options are analyzed.Characteristics,themethod of introducing real options in the valuation process of overseas mining rights.Since the evaluation of the value of overseas mining rights involves cross-border transactions,this article uses the BS option pricing model as the research basis,and introduces the combined volatility of the underlying assets composed of exchange rate and mineral product price fluctuations to improve the original model and establish overseas mining rights.Real option evaluation model.Through the introduction of the evaluation case of A bauxite,using the parameters of the original evaluation base date,the value of the mining rights of A bauxite was evaluated using the real option method,and the evaluation result was obtained: the evaluation case of A bauxite mining rights The estimated value of the DCF method is RMB 397,072.3 million,and the estimated value of the real option method is RMB 53,952.85 million.It proves that the evaluation result of the real option method makes up for the shortcomings of the traditional DCF method which is not flexible and ignores the uncertainty of mining rights,and reflects the rationality and applicability of the real option method in the processing of overseas mining rights value evaluation business.