A commite operation of mining exploration in South Africa makes new clauses for mining company with value input in each project of mine operation by mining companies, especially mineral mine company. This regulation will be implemented in the next month.

Following statement of chief commite Samrec-samsal :

“The Samval code would apply to projects with different stages of development, from exploration through to production, or even defunct. It spelt out three different ways that the minerals in those projects could be valued — using a discounted cash flow, market approach or cost method — and the qualifications needed for the competent valuator”.

The South African mineral asset valuations (Samval) code formalises the valuation that many companies have already been presenting to investors when discussing projects.

It applies only to minerals, not oil, gas or water.

Dixon said that the Samval code did not specify the price of the mineral that the competent valuator should use in his valuation. However, he had to justify why he chose to use certain prices, discount rates and exchange rates, so investors could draw their own conclusions.

Making the Samval code a listings requirement would not impose extra work on companies but simply encourage best practice and prevent valuations being carried out by people who were not competent, so as to protect investors in listed companies, Dixon said.

The competent valuator must belong to a professional body with an enforceable code of ethics, so there would be some recourse for investors, and have relevant experience in valuing projects

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