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
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