Valuing mining companies
A guide to the assessment and
evaluation of assets, performance and prospects
"The author ... is well
qualified to have written what is claimed with some justification to be the mining
investors' first vade-mecum."
Engineering & Mining Journal, USA
"many useful tips for
both the novice and the experienced mining professional."
Mining Magazine
Valuing mining companies
provides:
A one stop shop to mining
analysis
Up-to-date information on
companies and their markets
A historical section puts the
industry in perspective
An easy to understand
reference without technical jargon
In order to value a company
it is necessary to evaluate its prospects from all points of view. Valuing mining
companies takes the reader through geology, mining, mineral processing and the final
marketing and pricing of a mineral commodity. From a financial perspective the book
covers the taxation and balance sheet structure of a company and describes how this can
affect valuation, giving examples of different valuation techniques. Throughout
there is also an increasing emphasis on the environment and the additional costs mining
companies have to bear.
About the author
Charles Kernot was educated
at Winchester College and The Royal School of Mines in London where he obtained his
honours degree in mining geology. He is also a member of the Institution of Mining
and Metallurgy. He has worked in the City since 1985 and has researched all areas of
the metals and mining industry over the course of his career prior to joining Paribas in
1995. He was previously head of International Mining Research at Credit Lyonnais
Laing.
Contents
The history of mining
The development of mining
companies - the early years
The development of mining
companies - the past 20 years
A guide to the current range
of mining companies
Exploration
Discovery and definition
Mining techniques
Processing routes
Mining company taxation and
allowances
Mining company accounting
practices
Mine financing
Metal price forecasting
Cash flow and earnings
analysis
Management evaluation and
other techniques
Trading in mining shares
Contents in detail
Part One: The development of
the mining company
1 The history of mining
The beginning of mining Discovery and interest in metals Coinage The first mines
2 The development of mining companies - the early years
Cornish mines The South African mines and finance houses The Australian scene North
American adventures Rest of the world
3 The development of mining companies - the past 20 years
Diversification Structural change Emerging markets The benefits of success
4 A guide to the current range of mining companies
Part Two: Evaluation
requirements
5 Exploration
Where to look Metal deposits Geological associations Geological structure and formation
Industrial mineral deposits 6 Discovery and definition Drilling and sampling Reserve
calculation Feasibility studies
6 Discovery and definition
Drilling and sampling reserve calculation Feasibility studies
7 Mining techniques
Dredging Open pit mining Underground mining
8 Processing routes
Process routes The first stage The second stage The third stage Losing metal all the
way
9 Mining company taxation and allowances
Australian grants and taxation Canadian grants and taxation South African grants and
taxation United States grants and taxation Other countries grants and taxation
10 Mining company accounting practices
Accountancy practices: past and present Accountancy practices within the mining
industry Enhancing revenues Net profits interests and net smelter returns
11 Mine financing
Mine financing
Part Three: Evaluation techniques and trading
12 Metal price forecasting
Precious metals price forecasting Base metal price forecasting Bulk commodities Minor
metals and other commodities
13 Cash flow and earnings analysis
Cash flow statements Discounted cash flows and net present values Investor's use of
net present values Single mine companies Single product companies Multi-product companies
14 Management evaluation and other techniques
Management experience Valuing management Other valuation techniques
15 Trading in mining shares
Types of investor Constructing a portfolio Local stock markets Stock market trading
When to buy
256 pages