Content №4 от 2011

Assessing efficiency of the development of the Elginsky Field

The paper assesses the development of the Elginsky Coal Field located in the area of Baikal-Amur Main Line (BAM) by Discounted Cash Flow Analysis and Real Options Analysis. The latter allowed us to state that the decision made by the company «Russian Rail Ways» («RZhD») on its withdrawal from this project proved to be commercially erroneous. Applying a Black - Scholes model, we can state that a license price for the development of the Elginsky Coal Field proved to be underestimated at the public tender.

Shemetova V. G. viktoriya-shemetova@yandex.ru

Keywords: assessment area of the Baikal-Amur Railroad project area of Baikal-Amur Main Line (BAM) Elginsky Coal Field assessments real options analysis discounted cash flow analysis