Mining Due Diligence and Mining Valuations
Mining consultants providing realistic appraisals for informed investment decisions.
Proper valuation of undeveloped coal or mineral reserves and/or mining operations requires the professional consultant to have accurate market information and use sound judgment. A thorough mining due diligence study or mining valuation must examine many critical factors directly affecting the final appraisal by the mining consultant.
BOYD appraisers' skills are based on our:
- mining industry perspective and first-hand experience gained through continual assignments for producers, buyers and investors.
- unique qualifications to realistically assess reserve mineability, competing mining operations, existing/potential liabilities, and market demand.
- consulting experience in mining property transactions of varying nature.
Mining Due Diligence
Mining Due Diligence Definition: appropriate level of study by knowledgeable professionals to identify and assess significant factors affecting the future operation of the subject mining property.
BOYD performs mining due diligence studies at the international level. The decline in the number of mining companies continues as parent companies and operating entities announce divesture of their holdings. BOYD personnel have presented papers focusing on mining due diligence for both coal and minerals:
Due
Diligence Requirements For
Coal Property Acquisition
PDF file size - 6 MB
Presentation by Ronald L. Lewis and Lee A. Miller at the Sixth Annual Coal Outlook Coal Properties Buying and Selling Conference in St. Petersburg, Florida.
Due Diligence For Mineral Property Acquisition: A Technical Primer PDF file size - 185 KB
Presentation by Daniel J. Cornette and Lee A. Miller at the National Mining Association Mining Lawyers Conference in Tucson, Arizona.
The mining due diligence review of a coal mining or mineral mining property provides reasonable assurance of the basis of investment related to purchase, financing, and internal assessment. A mining due diligence scope of work is presented below:
| Mining Due Diligence Technical Review |
Regional or Areal Overview
Overview Analysis of Property
- Property - control, lease terms, surface, reliability of title
- Coal/mineral - reserve, quality
- Coal/mineral mineability - geology, overburden, previous mining, physical conditions, accessibility, other constraints
- Mine - operations, services, support
- Marketing - transportation, markets, realization
Related Studies
- Legal
- Environmental
- Employee Related Liabilities
- Accounting
Evaluate and Select Mining Plan
- Mining Equipment Selection
- Mine Layout
- Mine Support
- Coal Preparation/Mineral Processing
General Cost Analysis
- Annual Production Capacity
- Mining Requirements
- Capital Expenditures
- Mine Supply Cost
- Mine Production Cost
- Off-Site Transport
- Markets and Transportation
Final Valuation
- Discounted Cash Flow Analysis
- Risks and Sensitivity Analysis
Mine Valuation
Mine valuation services are an important, well-recognized BOYD mining consultant capability. When operating companies or reserve owners wish to sell their holdings, BOYD provides sales brochures, presentations, data room services, and assistance in negotiation. In fact, urged by many clients, James W. Boyd has authored a book on the subject, "Fundamentals of Coal and Mineral Valuations."
As mining consultants, we have an experienced foundation for analyzing comparable sales; this enables proper valuation of undeveloped coal/mineral reserves and mining operations.
A thorough valuation must examine many critical factors directly affecting the final appraisal by the mining consultant (see chart below).
Look to BOYD mining savvy.
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