A Case Study On The Application Of Improved Binary Tree Model In JGQ Mining Right Value Evaluation

China is rich in mineral resources,and the total proven mineral resources rank third in the world,second only to the United States and Russia.But the per capita possession is insufficient.This problem is particularly serious in China's iron ore resources.As the main raw material of steel,China's iron ore resources are in great demand,but the supply mostly depends on imports.To alleviate the shortage of iron ore resources in China,we should not only encourage and support the exploration and exploitation of new iron ore resources,but also make rational use of existing mineral resources.If mining rights can be reasonably circulated in market transactions,it is necessary to ensure the rationality of evaluating the value of mining rights.To get rid of the situation of excessive exploitation and abuse of mineral resources,the government pays the bill,and the mining capacity is over-exploited,and realize the high-price transfer,optimal exploitation and rational development of mineral resources,the first problem is how to scientifically and reasonably evaluate the mining right,which mainly reflects the rights and interests of mineral resources owners.This paper introduces the practical case of mining right evaluation of JGQ iron mine,selects the actual case to analyze the whole process of DCF method to evaluate mining right value,and finds the defects of traditional evaluation of mining right value,namely,ignoring the influence of market fluctuation on the evaluation results,the difficulty in determining the discount rate and ignoring the option characteristics of mining right.Considering the existing defects and the characteristics of mining rights,this paper expounds the advantages of real option method compared with traditional methods and the scientificity and rationality of this method.On this basis,the binary tree model of mining right evaluation is constructed,and in order to reasonably predict the price of mineral products,GARCH model of time series analysis is used to estimate the volatility of key parameters.Then,the two evaluation methods are analyzed to illustrate the applicability of the improved binary tree model in the evaluation of mining right value.Finally,it summarizes the research contents and conclusions of the full text,and points out the shortcomings of this study and the future research direction.The research of this paper shows that the application of the improved binary tree model in the value evaluation of mining rights is more accurate and convenient.It is expected that through the theoretical research and case verification of this paper,it will provide a new idea for the value evaluation of mining rights based on binary tree model.Provide guidance and reference for appraisers in the practice of mining right evaluation.