What procedures and information are required for asset valuation of mining companies?

Mondo Finance Updated on 2024-01-31

Mining rights, also known as mining rights, refer to the right to use mineral resources, including prospecting rights and mining rights. Mineral valuation options include the comparable sales method and the discounted cash flow method, and the prospecting rights can be evaluated according to the geological element assessment method, the replacement cost method, the geological exploration add-on method, the joint risk exploration agreement method and the discounted cash flow method.

According to the changes in the status of various mineral market entities in the mineral appraisal process, the basic procedures of asset appraisal of mineral companies can be divided into three stages:

1. Entrusted evaluation stage.

The appraisal client and the appraisal agency are the main leaders, and the main content of management is the entrustment procedure and content.

Second, the evaluation stage.

a) Preparations.

Listen to the client's introduction to the appraisal object in detail, including the content (the history of registration and change of the appraisal object, the appraisal history, the working hours, the work unit, the nature of the work, the historical evolution of the geological work, the exploration results, the nature and amount of investment at different stages). Subsequently, the assessors conduct a field survey of the mining rights, investigate and collect market transactions and ** information on local mineral products. On this basis, the evaluation ideas, technical routes and determination methods are formulated, and the data are summarized and collated, and the data and information are verified.

2) Assessment and estimation.

3) Finalization. 3. The stage of confirming or filing the assessment results.

Mining right appraisal is an estimate of the value of mining rights at a certain point in time by specialized agencies and personnel according to the purpose of the assessment, the use of the assessment object and the actual situation, and the valuation conditions determined by the national laws, regulations and relevant technical and economic data. Therefore, the materials required for the evaluation of mining rights mainly include: mining license and production licenseGeological Report;Consideration of the resolutions of the Reserves Committee or the Bureau of Geology and Minerals;Reserves review confirmation, occupied reserves registration certificate, production mine reserves dynamic table, reserves change and other documents;Feasibility study report or mine development and utilization plan;Preparation of feasibility study plans or reports;If a production mine applies for changing the mining license or re-demarcating the mining area, it shall also provide a description of the development and utilization of minerals and the "Reply on the Demarcation of Mining Area" issued by the competent department of geology and mineral resources. Turn the page in 2023

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