Font Size: a A A

A Study Of The Application Of Mineral Asset Valuation In Mineral Capital Market

Posted on:2017-01-02Degree:DoctorType:Dissertation
Country:ChinaCandidate:YangFull Text:PDF
GTID:1109330482484314Subject:Resource industries economy
Abstract/Summary:PDF Full Text Request
Mining is a typical capital-intensive industry, which requires and relies on capital market to ensure sufficient funds for its development. Mineral capital market refers to the capital market which provides capital to mining companies, such capital market including equity capital and debt capital. Mineral asset valuation is the process of determining the monetary value of a mineral asset, and is an important part of the financing and transaction activities in the mineral capital market involving mining enterprises holding mineral assets. This research analyses the current status and development trend of mineral equity capital market and mineral asset valuation, explore the significance of mineral asset valuation in capital market and conduct a thorough study of the issues in application of mineral asset valuation in capital market. This research also provides important, practicable and effective improvement recommendations on mineral asset valuation in Chinese capital market by making reference to mineral asset valuations and its development directions in international capital markets. This research obtained the following main research achievements and awareness.1. Conduct in depth analysis of existing problems in China’s mineral asset valuation and mineral capital market. Including: problems related to mineral asset valuation theories and methodologies; problems in mineral asset valuation standard; problems related to mineral asset application in mineral capital market; and problems related to regulatory and risk management in mineral asset valuation. These problems not only limit the development of mineral capital market in China, but also endanger critical market support on mineral asset valuation.2. Summarise key importance and significance of mineral asset valuation in mineral capital market. Including: assist in management decisions; protect shareholders’ interests; maintain stability and integrity of mineral equity capital market; facilitate mineral asset transactions; improve corporate governance of mineral companies; improve financing of mineral companies; assist in executing laws and regulations.3. This research finds out that it is pre-mature to consolidate mineral asset valuation standard, and is not practicable. It is important for each country to make reference to each other’s approaches and develop a tailored standard that fulfills its domestic needs. An international communication mechanism is highly recommended. Convergence of mineral valuation standard and ordinary asset valuation standard is encouraged to ensure better access to capital market for mineral assets.4.Reference is made to mineral asset valuations applications in international capital markets to provides important, practicable and effective improvement recommendations on mineral asset valuation in Chinese capital market. Including: releasing bans and open up mineral capital market to ensure convergence with international markets; encourage diversity of mineral capital market in China, develop a multi-layer capital market platform; enhance the development of mineral market service system; promote fundamental education to investors and enhance their importance in the mineral capital market.5. Provide detailed improvement solutions of current mineral asset valuation theories and methodologies. Including: improve valuation method selection principles, moderately broaden the distinguishing of valuation approaches, encourage the use of hybrid valuation method; adjust applicable range of Comparable Transaction Method and Discounted Cash Flow Method to ensure reasonableness of these widely used and commonly criticized methods; conceptually distinguish between Technical Value and Market Value and using premiums and discounts to convert between the two.
Keywords/Search Tags:mineral asset valuation, mineral asset valuation standard, equity capital market, mineral capital market
PDF Full Text Request
Related items