| There
are substantial differences between conventional real estate and mineral property
appraisal. A mineral property is a location specific and dependent, special-purpose,
limited-market property and to properly perform an appraisal or evaluation of a mineral
property and to communicate the results requires an appraiser with specialized knowledge,
skills, and abilities. Successful mineral properties are a unique combination of geology,
land, property rights, and markets possessing special attributes and characteristics.
Acquiring the necessary minerals industry and appraisal competency is a long and arduous
process, but it is absolutely essential for increasing client and third party confidence
and reducing uncertainty in the results. Whether the client is the property owner or an attorney,
accountant, banker, broker, mining operator, royalty holder, investor or other interested
party, they can rely on Mineral Business Appraisal's special expertise when they need
mineral property or mining business valuation services. All appraisals are performed in
accordance with the internationally recognized Uniform Standards of Professional
Appraisal Practice which are accepted by all courts and governmental agencies and to
FIRREA mandated standards for bank lending purposes.
Appraisals of mineral property serve two
important functions in our society: to assist the public by advising them on questions of
value and to provide an unbiased and objective estimate of value in accordance with
business practices and provisions of law. There are countless occasions when formal
minerals appraisals are necessary or recommended. Such occasions can be separated into two
major categories: market-related transactions and legal-related reasons. Many of the
events requiring minerals appraisals are shown in the following table.
| Market-Related
Transactions |
Legal-Related
Reasons |
| Purchase of
Property or Royalty |
Eminent
Domain/Condemnation |
| Sale of
Property or Royalty |
Property
Taxation and Appeals |
| Exchange of
Property |
Estate or
Inheritance Tax |
| Financing
Security for Bonding |
Mining Lease or
Royalty Disputes |
| Management
Decision Making |
Business/Marital
Dissolution |
| Mine
Development |
Bankruptcy or
Loan Foreclosure |
| Mine Expansion |
Company Merger
or Liquidation |
Discuss your mineral
property appraisal, mining business valuation, or other mineral industry
related 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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