MINING
Frameworks for mineral reporting
Mineral asset valuation is guided by internationally recognised reporting and valuation frameworks that promote consistency, transparency and investor confidence.
Mineral resources and reserves are generally reported under codes aligned with the Committee for Mineral Reserves International Reporting Standards( CRIRSCO). This global body provides a template that underpins national reporting standards including:
• South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves( SAMREC)
• Joint Ore Reserves Committee( JORC) in Australasia
• Pan-European Reserves and Resources Reporting Committee( PERC) in Europe
“ Beyond the regulatory consequences, inaccurate valuations erode confidence among investors, lenders, customers and strategic partners."
Combining diligence and objectivity Independent mineral asset valuation is most effective when it combines robust technical due diligence with objective financial assessment to:
• Reduce the risk of overstating or understating a project’ s worth
• Improve investment decisions
• Raise confidence among investors, lenders and strategic partners
Multidisciplinary expertise is vital, to evaluate technical assumptions relating to geology, mining, metallurgy, environmental obligations and market conditions.
An independent valuation should produce a transparent, reasonable and defensible estimate that accurately reflects the asset ' s technical realities, commercial potential and associated risks.
Among the other national codes are National Instrument( NI) 43-101 in Canada and the US Securities and Exchange Commission regulation S-K 1300 in the United States – serving similar disclosure purposes within their respective jurisdictions.
Valuation itself is governed by codes that fall under the International Mineral Valuation Committee( IMVAL). These include:
• South African Code for the Reporting of Mineral Asset Valuation( SAMVAL)
• Australasian Code for Public Reporting of Technical Assessments and valuations of Mineral Assets( VALMIN) in Australia
• The CIMVAL Code for the Valuation of Mineral Properties in Canada
• Society for Mining, Metallurgy & Exploration( SME) valuation standards in the United States
Together, these frameworks establish principles for competency, independence, transparency and reasonableness, helping ensure that mineral asset valuations are technically defensible and internationally credible. �
sabusinessintegrator. co. za 49