Professional Documents
Culture Documents
MINERAL EXPLORATION
PROSPECT EVALUATION
PROJECT CONSTRUCTION
MINE PRODUCTION
Resources
Reserves
PRE-FEASIBILITY STUDY
Value
DISCOVERY
Confidence
A function of the amount of knowledge on a mineral resource/property and the degree of probability of it being brought to account.
MINERAL EXPLORATION
PROSPECT EVALUATION
PROJECT CONSTRUCTION
MINE PRODUCTION
Resources
Reserves
PRE-FEASIBILITY sTUDY
STANDARD METHODS
DESKTOP STUDY
Value
DISCOVERY
Confidence
A function of the amount of knowledge on a mineral resource/property and the degree of probability of it being brought to account
MINERAL EXPLORATION
PROSPECT EVALUATION
PROJECT CONSTRUCTION
MINE PRODUCTION
Resources
Reserves
PRE-FEASIBILITY STUDY
STANDARD METHODS
DESK TOP STUDY
Value
DISCOVERY
Confidence
A function of the amount of knowledge on a mineral resource/property and the degree of probability of it being brought to account
MINERAL EXPLORATION
PROSPECT EVALUATION
PROJECT CONSTRUCTION
MINE PRODUCTION
Resources
Reserves
PRE-FEASIBILITY STUDY
DCF
DESK TOP STUDY
Value
DISCOVERY
Confidence
A function of the amount of knowledge on a mineral resource/property and the degree of probability of it being brought to account
MINERAL EXPLORATION
PROSPECT EVALUATION
PROJECT CONSTRUCTION
MINE PRODUCTION
Resources
Reserves
FEASIBILITY STUDY
PROJECT COMMISSIONING
PRE-FEASIBILITY STUDY
DCF &
Value
DISCOVERY
OPTION PRICING
A function of the amount of knowledge on a mineral resource/property and the degree of probability of it being brought to account
Confidence
Method is applied when the current viability of exploiting the resource is negative by using the DCF;
Reflection of the potential for the resource to be developed into a viable mine at some time in the future when the commodity price is favourable; The owner of the resource has the option to list the project on a stock exchange and realise the value the market would place on it; Use the option pricing theory to calculate the commodity price at which the full risk adjusted NPV of the mine is greater than 0.
THE BOTTOMLINE
Where possible, use a number of different valuation methods to increase the voracity of your results
Venmyn