Seeking Junior Gold Miners and Silver Miners for Investment. You really cannot just buy and hold – sell some to greed – buy into advfn weekly forex review cop was never more true but hard to do.
Note: List of Projects at bottom of page. Since the history of mining and exploration has seen large scale frauds in reporting to investors some regulations have emerged to try to control reporting. There are regulations around resources which can be reported and this can help investors to compare projects and assess potential returns. In Canada 43-101 standards, in Australia, JORC. A Glossary of Valuation Terms is provided at Campbell Valuation Partners Here. Be aware that as different project assessments are made at different times, against moving commodity prices and infrastructure costs, direct comparability is difficult. A very basic model may assist in aligning metal price assumptions for example.
Aligning capex and costs for studies prepared at different times is more difficult but might use inflation assumptions to align. Beware of companies stating pre and post tax NPV valuations which are clearly far from comparable. Different “Discount rates” are also used in various studies. I believe that as any bull market strengthens this will be the area where more and more aggressive discount factors are used to justify higher company valuations. At that point it will matter less that some large capex projects are 5 years away. There have been criticisms of the JORC and NI 43-101 processes, there is still a feeling that geologists can be paid to deliver the report companies request rather than be held to account by a professional body.
I can tell you 43-101 is a piece of garbage. It’s not protecting you guys in any way, shape or form. What we typically see where it falls apart is the block model. We just say, give us your datait usually fails right there. The extrapolation that they’re using for their reserves and resources is probably completely out of whack relative to the geostatistical information or data that is there. We’ve often talked in our group that one day, some day in the future when we’re ready for a change, it’ll be interesting to take a technical team like ours and start our own little fund. And with the ability to judge things, and I’m sure you guys have that as well, I can tell you for sure that fund would be short more than it would be long.
There are significant differences between quality standards applied at the different stages. There has been criticism of the quality of PEA assessments, where inferred resources are more likely to be referenced. Look for the Fatal Flaw, realistic key economic assumptions may direct attention. And there have also been questions on the place of the Pre-Feasibility Study – PFS.