Evaluation of the cost approach's usefulness for a mineral assets' valuation
Gospodarka Surowcami Mineralnymi – Mineral Resources Management 2011;27(2):63-78
KEYWORDS
mineral assets valuationcost approachexploration activitiesPolval (Polish Mineral Deposits Valuation Code)
ABSTRACT
The article discusses possibilities and usefulness of application of the cost approach for mineral deposits valuation. Author focuses on the ones related to exploration for and documentation of hypothetical deposits, looking in their case for possible areas of application of the approach in consideration. Analyses covers the three most commonly used valuation methods: Appraised Value Method (AVM), Multiple of Exploration Expenditure Method and Killburn's Method, indicating their strengths, deficiencies and dangers of potential misuse. In conclusion author indicates areas of potential application of the cost approach where it's proper application may deliver credible and useful results.
METADATA IN OTHER LANGUAGES:
Polish
Ocena przydatności podejścia kosztowego do wyceny aktywów geologiczno-górniczych
wycena aktywów, aktywa geologiczne, aktywa górnicze, podejście kosztowe, prace poszukiwawczo-geologiczne, Kodeks Polval
Prezentowany artykuł dotyczy możliwości i celowości wykorzystania podejścia kosztowego do wyceny aktywów geologiczno-górniczych. Autor koncentruje się na AGG Typu I i II tj. związanych z pracami geologiczno- poszukiwawczymi oraz dokumentowaniem złoża kopalin, upatrując w nich właśnie obszaru zastosowania omawianego podejścia. Analiza obejmuje trzy najczęściej wykorzystywane metody wyceny: wartości szacunkowej, wielokrotności wydatków na prace geologiczne oraz Killburn'a, wskazując ich zalety, wady oraz potencjalne błędy w ich stosowaniu. W konkluzji autor wskazuje obszary, w których zastosowanie wyżej wymienionych metod znajduje uzasadnienie i pozwala na osiągnięcie wartościowych wyników wyceny.
REFERENCES (20)
1.
Agnerian H., 1996 - Valuation of Exploration Properties. CIM Bulletin, V. 89, no 1004.
2.
Butra J., red., 2004 - Ekonomika projektów geologiczno-górniczych. Wrocław, CUPRUM.
3.
Damodaran A., 2002 - Investment Valuation. Tools and Techniques for Determining the Value of Any Asset. New York, John Wiley & Sons.
4.
Ellis T., 2007 - Cost Approach Methods for Mineral Property Evaluation. Materiały Konferencji SME/CMA Annual Meeting, Denver, Colorado.
5.
Gregg L. T., Pickering S. J. R., 2007 - Methods for Valuing Previous Exploration Programs During Consideration of Prospective Mineral Ventures. Referat prezentowany na: 2007 SME Annual Meeting Valuation Session, Society for Mining, Metallurgy, and Exploration, Littleton.
6.
International Financial Reporting Standard 6 Exploration for and Evaluation of Mineral Resources, IASCF, London, 2004.
7.
International Valuations Standards Committee: International Valuations Standards. IVSC, London 2005.
8.
Jackson T., 2008 - Black art of valuation is fraught with dangers. Financial Times, 15 września.
10.
Kilburn L. C., 1990 - Valuation of Mineral Properties which do not Contain Exploitable Reserves. CIM Bulletin, V. 83, no 940.
11.
Lawrence M., 2001 - An Outline of Market-Based Approaches for Mineral Asset Valuation Best Practice. http://www.alexanderresearch.c..., dostęp, styczeń, 2011.
12.
Lilford E. V., Minnitt R. C. A., 2005 - A comparative study of valuation methodologies for mineral developments. The Journal of The South African Institute of Mining and Metallurgy, styczeń 2005, str. 29-41.
13.
Redmayne R. A. S., Stone G., 1920 - The Ownership and Valuation of Mineral Property in the United Kingdom. Londyn, Longmans, Green and Co., reprint przez BiblioBazaar, New York, data nie podana.
14.
Saługa P., 2009 - Ocena ekonomiczna projektów i analiza ryzyka w górnictwie. Kraków,Wyd. 1, IGSMiE PAN.
15.
Special Committee of the Canadian Institute of Mining, Metallurgy and Petroleum on Valuation of Mineral Properties, Standards and Guidelines for Valuation of Mineral Properties "CIMVAL". CIMMPVMP, wersja ostateczna, luty 2003.
16.
TEGOVA, 2009 - European Property Valuation Standards. Bruksela, Wyd. 6, The European Group of Valuers' Associations - Tegova.
17.
The VALMIN Committee: Code for the Technical Assessment and Valuation of Mineral and Petroleum Assets and Securities for Independent Expert Reports "VALMIN". The Australasian Institute of Mining and Metallurgy, the Australian Institute of Geoscientists and the Mineral Industry Consultants Association, 2005 r.
18.
Uberman R., Uberman R., 2008 - Podstawy wyceny wartości złóż kopalin. Teoria i praktyka. Kraków, wyd. 1, IGSMiE PAN.
19.
Wood D., 2007 - Valuation and Risk Analysis of Oil & Gas Assets. Londyn, Materiały szkoleniowe Energy Institute.
20.
Wright C. J., Gallun R. A., 2008 - Fundamentals of Oil & Gas Accounting. Tulsa, PennWell.
| eISSN: | 2299-2324 |
| ISSN: | 0860-0953 |
We process personal data collected when visiting the website. The function of obtaining information about users and their behavior is carried out by voluntarily entered information in forms and saving cookies in end devices. Data, including cookies, are used to provide services, improve the user experience and to analyze the traffic in accordance with the Privacy policy. Data are also collected and processed by Google Analytics tool (more).
You can change cookies settings in your browser. Restricted use of cookies in the browser configuration may affect some functionalities of the website.
You can change cookies settings in your browser. Restricted use of cookies in the browser configuration may affect some functionalities of the website.
