Where insufficient information is available on an exploration property to derive a discounted cashflow model and net present value an alternative approach is needed to determine the value of a project. SRK has a team of highly experienced people who specialise in the valuation of such early to mid stage projects.
SRK would typically visit the site, and review all available current and historic information pertaining to the project. In addition, SRK can use its experience in the relevant commodity, its knowledge of the location and other projects near the project site to derive a fair value or more typically a value range. We then use a range of techniques which can be broadly assigned to the following three groups which would be used depending on the development stage of the property: Cost Based Methods, Market Based Methods, and Income Based Methods (see Technical Economic Modelling Service Statement).
Using a combination of the above techniques and drawing upon its experience and the databases at its disposal, SRK is very well placed to determine a fair value for a property for almost any commodity and at any stage of its development.
SRK is regularly called upon by exploration and mining companies seeking to obtain an independent valuation of either the company as a whole, of individual, or groups of, assets that they own or of assets that they might be interested in owning. The valuations so derived have variously been used in support of stock exchange listings and the raising of new equity, mergers and acquisitions, joint venture and farm in agreements.
- Valuations of assets, properties or projects from grass roots land holdings with no exploration history, to those which have been demonstrated to contain mineralisation but which have only limited exploration data, to well explored deposits which have a defined Mineral Resource but where a pre or full feasibility study has not yet been completed.
- Valuations of assets at later stages of development and where a cashflow model can be developed are covered under a separate Technical Economic Modelling service statement.
- SRK has no equity interest in any exploration, mining company or deposit thereby guaranteeing independence in the work carried out.