REPORTS

Gold Industry In-Situ Resource Valuation Report

Understanding the value of an asset is a fundamental requirement in the decision-making process for professionals in any industry. This is true for a variety of purposes from approving capital allocation to a project, negotiating the sale or purchase of an asset, or assessing the risk of impairment for audit purposes.

The simplest way to understand the value of an asset is to compare it to a known value for a similar asset. This is the referred to as the Market Comparative Valuation approach. Millions of residential properties are valued this way every day. This is also the way that the secondhand car market operates and many other assets changes hands.

In the context of the minerals industry, this methodology is greatly restricted by the lack of access to the mineral asset data that enables the Market Comparative Valuation approach. Because of the relatively low volume of transactions, the complexities involved with considering the confidence levels of in-situ mineral resources, and the comparability of assets, additional analysis of the data is required to yield meaningful results.

The Gold Industry In-Situ Resource Valuation Report was designed to address this problem for the gold industry and includes the following:

• Analysis of approximately 400 gold mineral assets (the Global Database) owned by publicly traded companies. The analysis is presented as dollar per ounce (USD/oz) value distribution curves for the Inferred, Indicated and Measured resource categories.
• Analysis of 59 publicly traded companies that own gold mineral assets. The analysis includes a comparison of the USD/oz in-situ value of each company’s mineral assets to the Global Database.
• Analysis of the Global Database based on the Development Stage of the mineral assets.
• Analysis of the Global Database based on the location of the mineral assets. The regions reviewed are North America, South America, Africa, Australia, and Rest of World.
• Analysis of 38 transactions (Total Transactions Database) in which gold mineral assets were bought or sold. Each transaction is analyzed separately and benchmarked against the Total Transaction database.