LEGAL DOCUMENTS & PROCESS VALUATION OF MINERAL DEPOSITS

Minerals are valued for a variety of reasons, including M&A activities, corporate equitization, underpinning property agreements, litigation, mining and insurance.

Documents and legal documents required when appraising mineral mine prices:

1. Legal documents related to the project

• Documents related to applying for mining permits and renting land
• Explanatory report of the project applying for a license
• Exploration license
• Mining license

2. Technical related documents of the project

• Documents related to technical survey
• Mine site map/map
• Minutes or documents proving reserve assessment
• Documents proving the quality of the ore
• Summary of mining results up to the time of valuation

3. Documents related to mine-related assets

• Detailed property list
• Asset-related documents (records, purchase invoices, equipment reports)
• Mortgage situation related to the property (if any)
• Documents relating to past mine valuation

4. Finance-accounting related documents

Resource valuation process:

1. General determination of the resource to be appraised and the type of value used as a basis for valuation.

– Identify customers, customer requirements, users of appraisal results

– Basic legal, economic and technical characteristics of the resource to be appraised

– Purpose of valuation, Time of valuation

– Assumptions and constraints

– Rights and obligations of the appraiser under the valuation contract

– Determine the necessary data source for the appraisal work

– Determining the value basis of valuation

2. Make a price appraisal plan

– Identify the market documents, and the sources must be reliable and verifiable

– Identify supply and demand factors appropriate to the functions, characteristics, and rights associated with resources and market characteristics.

– Develop research progress, order of data collection and analysis

- Formulate the outline of the implementation plan of the appraisal work

3. Site survey, information collection

a. Market survey :

It is necessary to take a picture of the resource in general and in detail as a basis for keeping the appraisal record

b. Collect information

c. The following information should be collected:

– About the legality of the resource

– Regarding mining output, unit selling price of a resource unit, revenue, cost, interest rate, income, etc.

– Regarding domestic and foreign supply and demand factors, forces participating in the market, potential buyers and sellers.

The source of information must be specified in the appraisal report and the information must be verified to ensure accuracy.

4. Information analysis

– Analyze information from the actual survey of the resource site

– Analysis of the best and optimal use of resources

– Analyze the characteristics of the appraisal resource market

– Analysis of customers

– Analyze the economic significance of resources at present and in the future

– Analysis of environmental issues and sustainability in resource exploitation

5. Determining the value of resources to be appraised

State the applied valuation methods and analyze the suitability of one or more methods in the valuation with the technical and economic characteristics of the resource and the purpose of the valuation.

6. Prepare appraisal report

– Valuation report

– Valuation certificate

Hoang Quan Appraisal Company Limited (HQA) is one of the leading prestigious appraisal companies with a nationwide system of branches and offices. In addition, the Resource Appraisal - SunResources service of SunValue will give customers the best service experience, customers will be consulted and helped determine the value of each type of property. from which to determine the most reasonable price to help customers achieve the best their goals.