VALUATIONS
We have had extensive experience involving financial valuations and economic
evaluations of mining and processing assets and businesses covering a wide
range of commodities and countries.
Typically, we use a wide range of approaches in valuing mining/processing
companies, and then select the most suitable mix of these approaches that
fit most effectively any given circumstance.
These approaches to valuation include:
 |
Net present value basis; |
|
Replacement cost basis; |
|
Original investment; |
|
Financial multiples; |
|
Comparable transactions; |
|
A&S' value estimates based on the above, plus its knowledge of current and future views of asset prices. |
The principal application of our work has been to meet the requirements
of Boards of Directors, corporate management or senior financial professionals
in financial institutions to provide an independent, professionally based,
desirably unassailable, valuation of a business or asset connected with the
global mining and processing industries.
The work itself involves identifying and reviewing a wide variety
of relevant data, to include, but not necessarily be limited to: surface ownership
and ownership of mineral rights, reserves, resources, maps, permits, mine
plans, relevant statistics (production, manning, equipment safety, mechanical
availabilities); market data, to include contracts, spot sales, profitability,
etc.; previous financial results, i.e., cash flow statements, P&L statements
and balance sheet information; financial and legal issues, e.g., royalties,
taxes, contingent liabilities, current and pending litigation, labor agreements,
and projections, to include OPEX, CAPEX, revenues, production, environmental
considerations, etc.
We typically visit the properties and the executive and operating management involved. Or we visit those knowledgeable of the project and/or companies and operations, develop financial and economic projections, both on a macro and micro basis, and then utilize one or more of the valuation approaches to arrive at a range of value.
