Valuations

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.

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).

Example Projects Include:

• Reviewed and opined on a proposed truck/shovel surface mine in the Republic of South Africa. This mine was unique in that one of the main seams to be removed was previously underground mined, so the surface mining operation was to perform large-scale pillar extraction. Assignment included:
  
  
  • Geology and reserves verification.
  • Opinions regarding appropriateness of mine design.
  • Review of all planning assumptions including equipment productivity and cost.
  • Advice regarding equipment selection.
  • Identification of major risk factors and potential solutions to these risks.
  • Review and redesign of proposed blasting methods.
  • Valuation of the proposed mine.
  • Review of alternative mining methods (such as draglines).
  • Development of performance benchmarks.
  
  
  
• Retained as the consultant for the acquisition of a major mineral holder. Our assignment included reviewing:
  
  
  • Coal reserve base and quality.
  • Preparation and material handling facilities.
  • Existing surface and underground operations.
  • Ten-year mining and business plans.
  • Mine closure cost estimates.
    
    Identified deficiencies in the existing operations and provided recommendations to enhance efficiency and performance.
  
  
  
• Retained to assist in the sale of the Colombian Government's 50% interest in the El Cerrejon surface mining operation in Colombia. Our study involved an evaluation of the entire mining operation and related facilities including rail loading, rail transport, and port operations. A strategy was developed to maximize the sales potential of the property and to effectively privatize the coal and transport operation.



• Retained by an equity investor to determine the value of an underground coal mining operation (design capacity of 4 million tonnes per year) in Queensland, Australia. The mine operates two longwalls and produces a hard coking coal for the export market. Evaluated operating practices, mining plans and geotechnical conditions, and provided operational recommendations to enhance productivity and reduce operating costs. Prepared a series of independent operating scenarios that included alternative mining projections and corresponding discounted cash flow analyses.



• Completed an independent valuation of one of the largest US stone/mineral mining companies in the US. Scope of review included stone/mineral reserves, asset appraisal and valuation of sixteen primary mining and processing sites using the discounted cash flow method.

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