Equity markets have experienced turbulent times in recent years, particularly in resource valuations and commodity prices. In this international bestseller Victor Rudenno once again provides comprehensive, current information on mining and unravels some of the mystery surrounding the resources industry.
Now in its fourth edition, The Mining Valuation Handbook will assist those in the mining industry seeking financial information, as well as people in finance looking for characteristics of the resources industry in an economic light. For the non–professional who is keen to invest in resource companies, this book will also help remove some of the mystique that often surrounds technical disciplines.
Inside you will find:
- extensive commentary relevant to the mining industry
- valuation concepts
- worked examples and feasibility studies
- the role of resources and reserves
- commodity values and forecasting
- real option analysis
- extensive commodity profiles.
The Mining Valuation Handbook is an essential addition to the libraries of astute investors and mining and financial analysts.
Table of Contents
Acknowledgements ix
Introduction xi
1 The resources industry 1
2 A quick guide to financials 13
3 Feasibility studies 21
4 Commodity values and forecasting 41
5 Resource project considerations 67
6 Classification of resources and reserves 97
7 Mining and hydrocarbon recovery 113
8 Indicative capital and operating costs 151
9 Hedging commodities and exchange rates 235
10 Taxation, depreciation, royalties and accounting standards 245
11 Valuation methodologies 265
12 Takeovers and fair value allocation 299
13 Quantifying the risk 317
14 Cutoff grade theory 329
15 Share price performance and real options 337
16 Impact of exploration, development and expansion 357
17 Determining the appropriate discount rate 381
18 Dealing with inflation 391
19 Agricola Mining a hypothetical example 397
20 Commodity profiles 417
Appendix A: Sources of information 495
Appendix B: Australian Native Title 501
Appendix C: Royalty rates 505
Appendix D: Economic geology primer 517
Appendix E: Project details 523
Appendix F: Exchange rates and CPI 541
Appendix G: Continuous discounting and annuities 545
Appendix H: Abbreviations, conversions and energy factors 547
Glossary 555
Bibliography and references 593
Index 597
