Pricing Mining Concessions Based on Combined Multinomial Pricing Model

Table 5

The multiples and their corresponding probabilities of representative value of annualized volatility.

Representative value of annualized volatility (%)	UM/DM		Probability (%)
15	UM	1.16	17.64
	DM	0.86	26.81
25	UM	1.28	13.29
	DM	0.78	20.05
35	UM	1.42	8.57
	DM	0.70	13.65

Note. UM refers to the upstream multiplier of the price of mineral products. DM refers to the downstream multiplier of the price of mineral products.