Mine Valuation Flashcards
The term ___ implies the assigning of a currency value to the worth of a mine or mining project and provides a measure of the desirability of ownership of that property.
Mine valuation
is the amount of money which a purchaser desires to pay for the ownership of a mineral
property.
Value
is the net sum, over and above the Cost of removal and sale, realized for a property or asset when it is retired from service
Salvage value
refers to the existing value of a property or asset as
determined on the basis of what it would cost to replace the property or its service with at
least equally satisfactory and comparable property and service
Replacement value
Is the value entered on the official
assessor’s records as the value of the property applicable in determining the amount of ad
valorem taxes to be paid by the property owner.
Assessed value
is the sum of discounted future annual net earnings generated by the property
Capitalized value
Hoskold
Vp = A / [ (i/(1+i)^n - 1) + i’]
Morkill
Vp = A [ ((1+i)^n - 1)/i(1+i)^n]
widely used to appraise a
project or investment
Net Present Value
This model reflects the present value of all estimated future cash flow within predetermined budgetary periods and possible continuing value
Discounted cash flow
This approach is considered by most appraisers and the courts to provide the best indicator of
fair market value, since it reflects the balance of supply and demand in the marketplace.
Market Approach
The fundamental concept with this approach is that a purchaser
would not be justified in paying more for a property than it would cost him to acquire land
and construct improvements that had comparable utility with no undue delay.
Cost approah
Is a measure of an option’s profitability based on the strike
price versus the stock’s price in the market.
Intrinsic value
is based on the underlying asset’s expected volatility and time
until the option’s expiration.
Time value
