Valuation of mineral deposits
In our country, the main methods for assessing mineral deposits are methods income approach, predominantly capitalizing potential earnings or discounting cash flow. The remaining methods are used to obtain calculated indicators used in determining the value of a deposit obtained using the income method, as well as the costs associated with compensating for damage caused to the natural environment, determining the value of mining property.
Cost approach methods are used to determine the cost of reproduction and the cost of replacing buildings, structures, equipment, as well as to assess natural resources lost or damaged during the operation of the deposit and environmental damage.
Comparative approach methods are used to obtain prices for mineral raw materials and equipment used.
Abroad, where the civil turnover for subsoil is developed (for example, the USA), methods of a comparative approach are quite widely used. The available methodological guidelines for subsoil valuation are recommended to be carried out using three approaches. The choice of method is determined by the objectives of the assessment, the degree of knowledge of the deposit and a number of other factors. Moreover, at different stages of exploration and evaluation of the field can be used different methods estimates.
scientific approach to economic evaluation minerals in our country began to take shape since the late 30s. The formulation of the problem and the creation of methodological foundations for the economic assessment of subsoil resources is associated with names,. , . In accordance with the methodology developed in those years, the economic evaluation of deposits was understood as monetary value reserves, determined on the basis of the price of a mineral, the cost of bringing the deposit into operation and the magnitude of the effect obtained from the exploitation of reserves.
For the economic or cost evaluation of mineral raw materials, a temporary standard methodology for the economic evaluation of deposits was used. The economic evaluation of mineral deposits was understood as the difference between the value of products obtained from the reserves of a particular deposit and the total operating and capital costs for its production over the entire period of development of the deposit, taking into account the time factor. This approach to the evaluation of mineral deposits has been preserved to this day and, adjusted for market conditions for the extraction and sale of raw materials, can be used to determine the value of mineral deposits.
The discount rate is taken equal to the rate of return or return on capital acceptable to the investor. The discount rate is set at a level that allows the investor not only to compensate for the risk, but also to receive the required profit.
The costs taken into account when calculating the cost of a deposit may include the costs of geological exploration carried out at the expense of the investor, the costs of transporting raw materials to the station or port of shipment (franking the price of transport-intensive raw materials), the costs of land reclamation, as well as the costs of compensating for environmental harm and insurance of risks of causing damage to the natural environment. The cost structure by main elements includes:
Depending on the purpose of the assessment, the costs either include or do not include taxes and other payments related to the extraction and use of minerals.
Guidelines for the feasibility study of conditions for calculating the reserves of deposits of solid minerals (except for coal and oil shale), approved by the Ministry of Natural Resources of Russia on March 15, 1999, are recommended to carry out the calculation in order to determine the efficiency of mining enterprises in two versions :
The most difficult problem is the determination of the discount rate. In practice, methods of economic evaluation of deposits are used, taking into account or not taking into account the time factor.
Abroad, the assessment of the value of mineral deposits is also based on the calculation of the expected profit. For evaluation purposes, the Hoskold formula is used, which allows taking into account the risk on invested capital. Two separate rates of interest are used to calculate the capitalization ratio: the speculative rate, which is the risk-adjusted market rate of return on capital, and the safe rate for the recovery fund, which is designed to return all invested capital in a single amount at the end of the investment.
When assessing the cost of deposits, several options for its development are considered. Of these, the option with maximum value cost.
Estimation of the cost of mineral raw materials in the bowels
Mineral valuation
Estimation of the value of mineral raw materials in the subsoil can be used to assess national wealth or to determine the initial price of a share in the privatization of an enterprise or in the sale of shares on the securities market. However, the results of this assessment are very relative. Therefore, in order to ensure the reliability of calculations, it is recommended to evaluate the forecast resources using a reliability coefficient taken equal to 0.1 - 0.15, depending on the degree of exploration of the territory.
Valuation of mineral deposits
To evaluate deposits for the purpose of their commercial use(acquisition of production rights, evaluation of project efficiency, etc.) general formula deposit estimates can be refined. New components can be introduced into it, more accurately describing economic conditions development of the deposit.
The average world price of a mineral can be determined on the basis of data published by the International Monetary Fund "International financial statistics", NBF, obtained from the State Statistics Committee of Russia.
Estimated annual costs for the assessed deposit (operating costs) with the projected mining technology can be determined based on the main structural elements and calculated by the formula:
And \u003d IT + TR + Op + H, where:
IT - average annual current costs, determined by actual data for prior year or according to the feasibility study of the field development project;
TR - average annual costs for the transport of products;
Op - average annual operating costs for environmental protection measures in accordance with the field development project;
H - average annual taxes and payments in subsoil use.
Information
The most appropriate basis for determining operating costs are the actual data on the production and economic activities of the mining enterprise, on the territory of which the estimated object is located, or located in the same area. If the object is located in an undeveloped region, any enterprise operating in another region can be taken as an analogue, and the adjustment economic standards can be carried out on the basis of the ratio of the values of production costs for those elements for which they are known. The main source of the necessary initial information is the annual report on the activities of the mining enterprise.
Estimation of costs for the protection and restoration of the environment
Initial capital investment in environmental protection activities may include
Sequence of valuation of mineral deposits
The assessment is carried out in the following order.
At the first stage:
In explored deposits, parts are distinguished that are approximately the same in terms of mining and geological parameters and technical and economic indicators. Based on current guidelines and normative documents inventory delineation options are determined. An analysis of the economic and geographical conditions for the location of the subsoil plot is being carried out.
Options for calculating the reserves of the deposit are selected, taking into account its natural features. The technologies of deposit development and the technology of processing (enrichment) of minerals are selected.
At the second stage:
A variant calculation of the technical and economic indicators of the deposit evaluation is carried out. For each option, the amount of recoverable reserves in terms of final products, the period of development of reserves, indicators of operating and capital costs are determined. The cost is calculated for each option.
At the third stage:
A rational option for exploitation of the deposit is selected and a feasibility study (feasibility study) of the project is being prepared and approved. If necessary (in case of insufficient efficiency of the chosen field exploitation option), technical and economic solutions can be refined and comparative efficiency indicators can be calculated.
Materials of the report of the valuation of mineral reserves should include:
1. General information about the subsoil plot, where the description is given:
2. The geological characteristics of the subsoil area must contain:
3. Technological indicators of the development of deposits and subsoil areas include descriptions of the field parameters of each of the selected objects of assessment, possible technological development options, forecast indicators for the production of the main and by-products.
Problems of assessing subsoil use rights
Currently, a number of appraisers have a misconception about the calculation of the cost of mineral deposits or subsoil plots. It is assumed that a one-time payment, the so-called “signature bonus”, reflects the value of the deposit, and the acquired right to use a subsoil block, issued in the form of a license, can be transferred for use or sold. However, the crux of the matter is as follows.
1. Subsoil users who have received the right to use subsoil pay one-time payments for the use of subsoil upon the occurrence of certain events specified in the license. This can be either a one-time payment for the right to acquire a license (signature bonus), or one-time payments for the beginning of field development, for the peak production period, etc. At the same time, the minimum (starting) size of one-time payments for the use of subsoil is set at a rate of at least 10 percent from the amount of the tax on the extraction of minerals, based on the average annual design capacity of the mining organization. The final amounts of one-time payments for the use of subsoil are established based on the results of a tender or auction and are fixed in the license for the use of subsoil. That is, a one-time payment does not reflect the value of the deposit.
2. The right to use subsoil plots shall be transferred to another entity in the following cases:
Upon transfer of the right to use a subsoil block, the license to use the subsoil block is subject to re-issuance. In this case, the terms of use of the subsoil block, established by the previous license, are not subject to revision.
The right to use a subsoil plot or plots acquired by a legal entity in accordance with the established procedure cannot be transferred to third parties, including by way of assignment of rights established by civil law, except as provided for by the Federal Subsoil Law or other federal laws.
Also, a license for the use of subsoil plots acquired by a legal entity in the prescribed manner cannot be transferred to third parties, including for use.
Thus, the legislation on subsoil use does not establish the possibility of direct transfer of a license, as allowed by the Civil Code, in the form of a pledge, transfer of property rights or sale of a deposit.
However, as the experience of other countries shows, the development of market relations in the domestic subsoil use sector makes it necessary to legalize the circulation of subsoil use rights and, accordingly, assess the value of a deposit as an attribute of civil law relations.
EVALUATION OF MINERAL DEPOSITS (a. evaluation of mineral deposits, assessment of mineral deposits; n. Lagerstattenbewertung, Lagerstatteneinschatzung; f. evaluation des gisements mineraux, estimation des gisements mineraux; i. valoracion de los yacimientos de minerales) - determination of the industrial significance of manifestations and mineral deposits using a complex of geological methods (geological assessment) and economic calculations (economic assessment). It is carried out at all stages of their study, exploration and industrial development - from regional forecasting to full development, however, it acquires main significance immediately after discovery (in order to resolve the issue of the feasibility of organizing exploration work on it), during the transition from preliminary exploration to detailed, before the transfer of the deposit for industrial development and on the eve of the completion of the mining of identified and explored mineral deposits.
At 4 early stages of the exploration process (regional study of the territory, geological surveys with general prospecting, prospecting, prospecting and appraisal work), based on general geological data, an assessment is made of the possible prospects of a particular area as a whole (ore province, ore belt, zone, ore area or node; pool, structure, etc.). Based on a certain geological concept (geochemical specialization of the region and rock complex, favorable tectonic, magmatic, lithological-stratigraphic, structural and other prerequisites), on geological and specialized (geological-formational, etc.) maps of the appropriate scale (1: 500,000 - 1: 50000) areas (zones, basins, structures) are allocated that are subject to more detailed study. By analogy with other areas and taking into account the necessary correction factors for these areas, the predicted resources for category P3 are calculated. If there are previously recorded signs of the desired type of minerals, such reserves can be tied to more limited areas - zones, structures, etc. In this case, the predicted resources are classified as P2. The areas of their distribution are objects for setting up detailed specialized search or search-revision and appraisal work.
Forecast resources of category P1 are usually identified in the process of local forecasting (1:50000 - 1:2000) mainly on the flanks and deep horizons of explored or exploited deposits. They are reflected on detailed structural and forecast maps specially compiled for this purpose and serve as a reserve for expanding the resource base of existing enterprises and the basis for planning more detailed geological exploration. The geological assessment of the identified manifestations of minerals is carried out based on the results of targeted prospecting and exploration works and consists, on the one hand, in determining the quality (by sampling outcrops) of minerals and the extent of its possible distribution (in terms of thickness, area and depth), and on the other hand, in establishing the prospects of the area for this species minerals (according to the geological and tectonic position of the object under study, its belonging to a certain genetic and geological-industrial type, geochemical specialization of the area, its geophysical parameters, etc.). If the results of the geological assessment are positive, a preliminary economic calculation in order to determine the minimum allowable scale of the object, which in the given geographic-economic and mining-geological conditions would meet the requirements of the industry (the so-called rejection standards).
The prospects of the area are assessed by dividing all the identified manifestations of minerals into unpromising "roots" of the mineral deposits destroyed by erosion (immediately rejected); independent bodies of various sizes (subject to exploration if their main parameters meet the standard requirements); indicators of larger deposits of minerals hidden at depth (the most promising option, which allows a very positive assessment of the entire structure under study, Fig.).
With regard to telethermal deposits, the optimal ratio of 3 identified groups of ore occurrences is usually 20: 10: 70, and for the highest temperature skarn and pegmatite rare metal deposits, approximately 60: 30: 10. When predicting hidden deposits of minerals, the initial evaluation criteria are: the vertical range of distribution of this type mineral; multi-tiered localization (for example, the number of lithologically favorable horizons in the geological section of the area); the presence in the overlying rock strata of certain signs of minerals (scattering haloes).
In addition to the actual manifestations of minerals, a variety of geochemical, geophysical and other anomalies, as well as promising structures, are also subject to geological assessment. Their evaluation is carried out initially according to the data of the office processing of the obtained materials (for example, geochemical anomalies are sorted out based on the identification of the leading role of over- or under-ore indicator elements), followed by crossing by single exploration workings, most often prospecting and structural boreholes. The result of the work done is a reasonable decision on the degree of prospects of the object, on the basis of which a recommendation is made on the advisability of organizing preliminary exploration on it, including it in the fund of reserve objects, or recognizing this manifestation as unpromising, not deserving attention and further study. At the same time, a number of economic factors are necessarily taken into account: the degree of scarcity of this type of mineral raw materials, the need to compensate for redeemable reserves in the area of operating enterprises, etc.
In the process of preliminary exploration, carried out according to a specially drawn up project, the issue of the industrial significance of the discovered deposit is resolved: its overall scale and quality of minerals, incl. technological properties, possible mining conditions, etc. Based on explored reserves (usually in category C2, partly C1), technical and economic calculations are carried out to determine the main indicators of the industrial development of the deposit with several options for conditions, taking into account the scale of production and other parameters, which finds its own reflection in a specially prepared feasibility report (TED). At the stage of preliminary exploration, both the geological assessment of the studied deposit and its area and the economic assessment of the explored areas of the deposit are equally important. The first is a detailed study of the conditions for the localization of minerals, an objective assessment of the degree of reliability of the identified reserves and the establishment of all possible reserves for their further expansion; the second - in the calculation of all types of costs (for the construction of a mining enterprise, roads, power lines, infrastructure, etc.) that need to be made during the industrial development of an object, and the expected economic effect. At the stage of detailed exploration, one of the main tasks of geological assessment is to determine the degree of reliability of explored and estimated reserves in order to prevent negative consequences if they diverge from subsequent production data. The morphology of mineral bodies, their position in space, the quality and technological properties of minerals, the technical and economic conditions for mining, etc. are specified. The geological and economic assessment of explored mineral deposits is carried out on the basis of a calculation of identified reserves based on conditions (temporary or permanent). The feasibility study of the estimated conditions (feasibility study) is carried out on the basis of wholesale prices for the corresponding type of mineral raw materials, the degree of its scarcity, mining conditions, technological properties and other indicators. For deposits of especially scarce types of mineral raw materials, in their assessment, instead of wholesale prices, "closing" costs are used, calculated according to the data production activities least profitable mining enterprises industries.
When preparing deposits for industrial development, a multivariate comparative economic assessment is carried out and the most economically profitable object is selected from among explored similar deposits, the purpose of which is to determine the degree of profitability of mining explored mineral deposits, taking into account the time factor: the sooner the object is put into operation, the faster the funds spent on its exploration will be reimbursed, and the lower will be the cost of the extracted mineral raw materials. Preference is given to objects located in economically developed regions or in regions where it is necessary to expand or create new territorial production complexes (Siberia, the Far East, etc.). In the latter case, the economic evaluation of the deposit provides for additional infrastructure costs.
The valuation of the subsoil is determined by the economic value of the mineral resources contained in it. This value acquires market and investment value at the time of extraction of a mineral from the bowels. Market and investment values are equal to income, which is calculated as the difference between the selling price and the cost of extracting the mineral. Depending on the purpose of the assessment, both world and domestic prices for mineral raw materials can be used in the calculations.
When evaluating the subsoil, the following can be determined: 1) the effectiveness of various options for the development of deposits and the conduct of geological exploration; 2) the cost of the subsoil use right - a license held by the company; 3) investment value of mineral deposits and subsoil plots; 4) the value of mining property; 5) the value of shares of mining companies; 6) the cost or economic value of the deposit for the owner.
Assessments can be carried out at the macroeconomic, regional and local levels. The objects of assessment may be certain territories and regions, reserves of mineral raw materials, individual deposits, as well as their sections and geological blocks.
Thus, the object of assessment for the purposes of determining national wealth is the reserves of all types of minerals contained in the bowels of Russia. Object of evaluation market value deposits - the entire deposit or part of it, for example, a licensed area transferred to a mining enterprise.
In Russia, the main methods for assessing mineral deposits are income approach methods, mainly capitalization of potential income or discounting. cash flow.
The cost of the deposit is estimated by the formula
where C is the cost of a mineral deposit; T – billing period exploitation of the deposit; - commodity value of mineral raw materials or gross income from the sale of mineral raw materials, taking into account incidentally extracted components, calculated at market prices; Zt - forthcoming operating and capital costs carried out in t-m year of operation of the deposit; r- discount rate.
Commodity value of mineral raw materials Cs
where Q– the volume of mining in t-th year or recoverable mineral reserves taken into account in the assessment; To 1 - coefficient of extraction of mineral raw materials from the bowels; To 2 – concentrate recovery factor (for metallic minerals); CC - the price of the final (first commercial) product in the international or domestic markets.
The discount rate is taken equal to the rate of return or return on capital acceptable to the investor, i.e. at a level that will allow the investor not only to compensate for the risk, but also to receive the required profit. For highly liquid minerals (for example, oil and gas), reduced rates percentage determined international markets credit resources (for example, LIBOR rates).
The costs taken into account when calculating the cost of a deposit may include the costs of geological exploration carried out at the expense of the investor, the costs of transporting raw materials to the station or port of shipment, the costs of land reclamation, as well as the costs of compensation for environmental damage and risk insurance causing damage to the natural environment.
Cost structure by main elements:
Depending on the purpose of the assessment, the costs either include or do not include taxes and other payments related to the extraction and use of minerals.
Methodological recommendations on the feasibility study of conditions for calculating the reserves of deposits of solid minerals (except for coal and oil shale), it is recommended that when conducting an assessment in order to determine the efficiency of mining enterprises, it is recommended to carry out the calculation in two versions:
It should be noted that subsoil use rights, usually confirmed or certified by licenses, are intangible assets mining companies that have received these licenses. Assets of this type are classified by international and European valuation standards as intangible property, and they are usually considered by economic analysts as the company's main asset.
These costs may include the following types of costs:
Initial capital investments in environmental protection measures may include costs for reforestation, water disposal and protection of water bodies, protection of the air basin, land reclamation and other costs.
Our appraisers have extensive experience in evaluating various fields and are familiar with both Russian standards reserve estimates (GKZ), and with international (JORC). When assessing the cost of a deposit, we take into account the balance reserves of minerals, market conditions, development efficiency, as well as the business plan of the subsoil user company. In most cases, when evaluating deposits, the customer is interested in evaluating the entire complex, which may include: a mining and processing plant (crushing and processing plant and a quarry / mine), a raw materials processing plant, infrastructure (sludge storage facilities, railways, power lines, roads, etc. .d.). We provide a full range of deposit appraisal services for various purposes, from raising finance to selling a business.
Experience over 10 years
Our specialists have experience in the evaluation of mineral deposits, as well as the subsequent evaluation of projects for the development of quarries, the construction of mining and processing plants, DOPs and raw materials processing plants
Current data
We partner with a variety of mining consultants to provide the most up-to-date exploration data
Building financial models
We build up-to-date financial models for the extraction and processing of minerals, taking into account the latest sales market data
| Object of assessment: | Service cost: | Evaluation period: | |
|---|---|---|---|
| Deposit with proven reserves (GKZ) | from 400 000 rub. | 10 – 12 days | Order |
| Field with proved reserves (JORC) | from 500 000 rub. | 10 – 12 days | Order |
| DOP | from 400 000 rub. | 10 – 12 days | Order |
| Career | from 250 000 rub. | 7 – 10 days | Order |
| Mines | from 250 000 rub. | 7 – 10 days | Order |
| GOK without infrastructure | from 600 000 rub. | from 15 days | Order |
| GOK with infrastructure (Railway, power lines, substations) | from 900 000 rub. | from 20 days | Order |
*The table shows the approximate cost of work on the evaluation of deposits. The final cost will be displayed in the commercial offer, indicating our labor costs and travel expenses.
Approaches to the implementation of projects for the evaluation of mineral deposits vary depending on whether the development is underway or there is only a project. In the event that the field is operating, we usually use two methods: profitable and costly, within the framework of which we conduct a study of the sales market and other factors affecting financial flows. After that, a forecast financial statements(P&L, B&S, cashflow) and is reduced to the final market value of the field. When evaluating field projects, many factors are taken into account, including the stage of project implementation, the availability of a development license, the presence of a project for the construction of a mining and processing plant, a feasibility study of conditions, a calculation of reserves, and much more. When contacting our company, experts in the assessment in the mining industry will be able to give detailed advice and make an acceptable commercial offer for you.
Can you evaluate the field development project?
We evaluate both deposits at existing mining enterprises and development projects. At the same time, as input data, we use the parameters noted in the development license, which indicate the annual production rate, the period of validity of the license, the terms of the license, and the mineral reserves in the subsoil.
Do you evaluate development rights (mining license)?
Yes, we do appraisal of mining rights. If the enterprise is operating, then the task of assessing the market value of a mining license becomes much more difficult than in the absence of an enterprise. Nevertheless, our specialists can conduct a qualitative assessment in both the first and second cases.
What time period do you use to build cash flows when evaluating deposits?
Usually, the period of validity of development rights (licenses) is used as the deadline for cash flow forecasting when conducting an independent evaluation of deposits. Nevertheless, if it is obvious that after the expiration of the license, a significant amount of minerals will remain in the subsoil, which can be economically profitable for extraction, then prerequisites are created for extending the license and, accordingly, for increasing the forecast period.
