The evaluating method of coal resource assets value applying real option

Coal mining is a project which has a big investment and a long cycle. On the basis of Analysing the traditional assessment methods of coal resource assets value and considering that the coal resource assets has a high risk and many uncertain factors, such as the price and the discount rate, this paper analyses the lacks of the traditional discounted cash flow method, which exist in assessments of coal resource assets value. Then the discounted cash flow method is improved with the option method, and the model of the coal resources asset value based on real option can assesses coal resource assets value more accuratly.