Study On Oversea Investment Risk Of UL Graphite Resource Project In Australia

At present,the economies of China and the world are constantly changing.With the concept of China's “going out” strategy and the great concept of the “Belt and Road Initiative”,Chinese companies,especially those in the resource industry,are eager to seize this golden opportunity to accumulate capital and resources quickly and expand the market through overseas investment.The "going out" strategy not only has extraordinary national strategic significance,but also has a very necessary economic significance for Chinese enterprises.However,we also realize that the risks of overseas investment are huge.Large-scale investment groups have made more and more failures in overseas investment due to inadequate assessment of overseas investment risks.Therefore,for the investment and operation of overseas projects,we must fully evaluate the potential risks.This paper analyzes the research status of domestic and foreign investment risks,and based on a large amount of literature,combined with practical work experience,selected the “UL graphite mine project in Australia” as an example of this paper to conduct investment risk analysis.First,the basic project background and the investment opportunities faced were introduced,and the strategic direction of graphite investment was confirmed.Secondly,this study adopts AHP,combining qualitative and quantitative,theory and practice,and evaluates the overall risk level of project investment by means of fuzzy evaluation.It established a risk indicator system,defined the risk level and classification criteria,and analyzed all risk factors that may arise from investing in the project.In addition,the net present value function model for realizing the actual situation of the opportunity project for the financial risks with large proportion in the evaluation is used to simulate the model through Monte Carlo simulation to find out the important risk factors.Through the analysis of the research status of investment risk at home and abroad,on the basis of a large number of documentation and combined with his own practical work,this paper chooses the "Australian UL graphite mine project" as a case of the overseas investment,and carries out the investment risk analysis.After analyzing the UL project as an example,the researchers concluded that financial risks are the most important in terms of the overall risk of the project,followed by technical risks,political risks,and environmental risks.Through the fuzzy evaluation method,the investment risk of the entire project is at a medium level.Through the assessment of financial risks,the risk of the entire financial risk is small.According to the simulation results,the market price of ore and the annual output of ore are the most sensitive and important risk factors in the entire NPV model.In the investment,we must always pay attention to the changes in the external market and the internal production capacity.Only in this way can we fundamentally prevent the occurrence of risks.Finally,based on the results of risk assessment and the actual situation of UL projects,this paper proposes a risk management and control strategy for UL projects.At the same time,it points out that the investment risk research of UL project is similar to the overseas investment risk research of similar mineral resources projects,and it also provides valuable theoretical basis and practical reference for other enterprises investing overseas.