👉 Coal math, also known as coal economics or coal finance, is the application of economic principles to the analysis and valuation of coal resources and their associated assets. It involves understanding the costs and revenues, risks, and market dynamics specific to coal production, trading, and consumption. Key concepts include the calculation of net present value (NPV) for coal projects, assessing the impact of carbon pricing and environmental regulations on coal's economic viability, and evaluating the financial performance of coal companies through metrics like return on capital employed (ROCE) and internal rate of return (IRR). It also considers the transition to cleaner energy sources, which can affect coal's future demand and profitability, making it a crucial tool for investors, policymakers, and industry stakeholders in making informed decisions about coal's role in the global energy landscape.
