| Appraisal,
or valuation, is defined by all of the professional appraisal organizations and regulatory
agencies as the act or process of estimating a value for some type of property in
an unbiased manner and as a disinterested third party, based on information obtained from
the marketplace for that particular kind of property. Appraisers normally make
distinctions among the terms value, price, and cost. The term price
usually refers to a sale or transaction price and implies an exchange; a price is an
accomplished fact. The term cost is generally used by appraisers in relation to
production, not exchange; cost may be either an accomplished fact or a current estimate. Value,
for appraisal purposes, is commonly defined as the monetary worth of a property, good, or
service to buyers and sellers at a given time. For common stocks, bonds, financial instruments, and
commodities that are listed on free and open exchanges and have thousands of trades every
day, cost, price, and value are essentially the same thing and can be readily determined
almost instantaneously. The shares of private companies and individual mineral properties,
mineral interests, and mineral production royalties, on the other hand, are very
infrequently traded and the actual selling price may not be readily available or easily
determined.
Mineral property appraisal or mining
business valuation involves selective research into appropriate mineral property, mineral
product, and mining company markets; collection and verification of relevant data and
information; analysis of this value related data and information; and, the application of
mineral industry knowledge, experience, and judgment to develop a credible estimate of the
value of the whole, or some specific interest in, mineral property or mining business
which reflects all pertinent market evidence.
Mineral Business Appraisal's Principal
Appraiser is a qualified mining geologist, and by its very nature, the appraisal of
mineral properties and the valuation of mining businesses requires a material and
significant application of and reliance on geologic, mining, mineral processing, and
mineral product markets research, knowledge, and experience, in addition to conventional
real estate appraisal and business valuation knowledge and experience.
Discuss your mineral
property appraisal or mining business valuation concerns with
Mineral Business Appraisal, Michael R. Cartwright michael@minval.com
Five Claret Court, Reno, NV 89512-4744
Tel/Fax: 775-322-9028
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What Is Minerals Appraisal-Valuation?
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Types Of Value: Mineral Property and Mining
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