The current methods of mining project valuation are akin to estimating a mineral resource using hand-drawn sections and a planimeter instead of modelling software. Typically, workflows for valuing mining projects (excluding discounted cashflow models) are onerous and rely on the compilation and analysis of various inputs in Excel spreadsheets.
Mining Valuation and Data Platform (MVDP) was created to address these issues. The MVDP is a centralised system that can access, filter, transform and normalise all historical and current transaction data for any commodity, in any currency, at any specific date.
This platform allows new data to be imported from proprietary databases to align with existing workflows. It supports mineral resource and ore reserve information collection at the resource, deposit and/or project level, handling any commodity type or combination, including complex polymetallic mineralogy.
A standout feature of the MVDP is its ability to incorporate and partially automate secondary valuation methods, such as the Yardstick and Geoscientific methods. This enables VALMIN Code-compliant valuations to be completed entirely within the platform. Additionally, the MVDP provides automated comparisons of these methods by asset and generates summary tables suitable for valuation reports. While data can still be exported for further analysis in Excel, using the platform promotes a standardised approach, reducing user error and ensuring that all valuations are saved with a permanent record and audit trail.
The centralised database and repository of fit-for-purpose data allows all our consultants to benefit from the economies of scale achieved by SRK’s global presence, and the best part is that the more it’s used, the better it gets. The system effectively automates collaboration, as it makes gathered data available to all SRK practices, unlike a spreadsheet.
Future plans for the MVDP include adding other secondary valuation methods, such as the Geological Risk method and Multiples of Exploration Expenditure. There are also plans to develop spatial analysis and visualisation tools to integrate transaction data with spatial data, such as geology maps. This would enable the development of real spatially based methodologies. Additionally, incorporating additional datasets (mining costs, etc.) and potentially even a system for undertaking discounted cashflow models could be developed.
This platform represents a significant step forward for how SRK compiles, analyses and stores the fundamental data that is the backbone of the mining asset valuation work we do globally. These economies of scale can be applied to other disciplines, potentially increasing efficiency across the organization.
