Mineral Exploration Property Valuation Perth
The mineral exploration property valuation usually falls into two broad groups, those with specified mineral resources and those without. In each case, the valuation method used is specific and relies in both situations on the degree of information about the consistency of grade and geology. Therefore, a calculation becomes more reliable and objective, as the evidence generated increases in consistency and quantity. View us on Property Valuation Perth.
There are many explanations why mineral exploration firms and mining companies will start valuing their ventures. This could be for mergers , acquisitions, revenues or purely internal rating of ventures. There are good opportunities for supported investment companies to develop portfolios of good exploration assets at a minimal cost during times of “depressed” exploration activity.
It is necessary, during this phase, to have an objective view of what is a fair and rational valuation for a project and to claim its full potential value. Similarly, in periods of decreased investment spending, businesses are also useful in evaluating their current ventures and providing a quantitative evaluation of them. This method helps with critical decisions on the project will be held, disposed of, “moth-balled” etc and the ventures are likely to produce the highest return on the investment budget.
When this has been achieved, we seek to define a set of minimum, average and functional values using a range of data and techniques of analysis. Most of the following is discussed during this process;
O Historical exploration costs — This technique summarizes all the money spent on a rental area to provide the exploration costs to date. Such spending may have had no impact, or may have been unwise in certain situations, and a discount factor must be added to represent the presumed actual market worth of the geological data collected.
O Project status — For appraisal purposes, the development of an investment property shall consist of five phases; grassroots ventures; intermediate ventures; advanced projects; resource identification projects; and complete feasibility projects. As the property progresses with positive results obtained, the chances of successfully realizing the maximum potential value increase.
O Project Compatibility — The measurement of “business performance” and the inherent ability to conduct exploration in a specified country / environment aims to weigh in the appeal of a particular project to a particular company and hence its interest.
O Country risk-Country risk assessment by quantifying the risks involved in conducting exploration in a particular country.
O Maximum Potential Values — Philosophically, the maximum “potential” value of an exploration property may be linked to the target mineralization being sought, but a realistic view of the geological potential must be established. Approach here is to determine the full possible value of the property based on the geological evidence currently accessible and our interpretation of the geological models implemented.
O Minimum values — In normal circumstances, establishing minimum values for an investment property is usually the simplest aspect of an exercise of calculation. If a property is purchased, then the purchase price is the minimum value that the owner applies to that land. Expenditure on historical research is also used to assist in this process.