Understanding the value of an asset is a fundamental requirement in the decision-making process for professionals in any industry. This is true for a variety of purposes from approving capital allocation and financing of a project, negotiating the sale or purchase of an asset, or assessing the risk of impairment for financial reporting purposes.
The simplest way to understand the value of an asset is to compare it to a similar asset with a known value. This is the referred to as the Market Comparative Valuation Approach or the Market Approach. Millions of residential properties are valued this way every day. This is also the way that the second-hand car market operates, and the way that many other assets change hands.
In the context of the minerals industry, this methodology is greatly restricted by the lack of access to the relevant mineral asset data that enables the approach. Due to the relatively low volume of transactions, the complexities involved with considering the confidence levels of in-situ Mineral Resources, and the comparability of assets, additional analysis of the data is required to yield meaningful results.
The Graphite Industry In-Situ Resource Valuation Report was designed to address this problem for the graphite industry and includes the following mineral asset data:
Analysis of 36 graphite mineral assets (the Global Dataset) owned by publicly traded companies. The analysis is presented as dollar per tonne contained graphitic carbon (USD/tonne) value distribution curves for the Inferred and Indicated and Measured resource categories. Analysis of 27 publicly traded companies that own or operate graphite assets. The analysis includes a comparison of the USD/tonne in-situ value of each company’s mineral assets to the Global Dataset. Analysis of the Global Dataset based on the Development Stage of the mineral assets.
This Graphite Industry In-Situ Valuation Report is designed to assist any person that needs to evaluate the in-situ value of graphite assets or projects. This report can be used to benchmark asset valuations, inform value expectations, identify over- or under-valued company stocks, assess past or proposed transactions, or estimate impairment risk. This report will add value to professionals in the graphite industry, including Investment Advisory Services, Corporate Finance, Transaction Advisory Services and Audit Services. From the information provided, the value of any graphite mineral asset can be quickly and accurately determined based on the estimated in-situ graphite Mineral Resources.
Introduction
Fundamental Premise
Mineral Resource Confidence
Development Stage
Jurisdiction
Valuation Methodologies
Limitations of the Cost Approach
Limitations on the Cash Flow Approach
Limitations of the Market Approach.
The Mineral Valuation Group Market Comparative Dataset
Data Gathering
Data from Publicly Listed Companies
Quality Assurance and Quality Control
Data Processing
The Global Dataset and Subsets
Global Dataset
Global Dataset Indicated and Measured Mineral Resources
Global Dataset Inferred Mineral Resources
Using the Datasets
Analysis using the Mineral Valuation Group Market Comparative Dataset