Investment decision-making of the mining right values based on mean-reverting

It is the key to reasonable estimate the mining right value in the investment decision-making. Mean-reverting is used to simulate the fluctuant process of product price, normal distribution and stochastic process help to forecast the annual net income. Then, the cost of equity can be reckoned by CAPM (the capital asset pricing model), and considering the cost of credit subscribed capital, the dynamic risk cost of mineral projects also can be estimated by weighted average cost of capital model. At last, we can get the investment value appraisal model of mineral projects. The results accords with the practically fluctuant character of mining right value and investment risks, the value of mineral projects also accord with the practical operating situation, it can provide a scientific and important reference for the decision-maker of mining projects.