The valuation of mining assets is timely given the recent upsurge in commodity prices and the spate of takeovers in the mining industry.
The book is written with the benefit of Wayne Lonergan's extensive practical experience and appreciation of problems applying valuation theory in the tough world of mining. Lonergan is able to explain technical issues in a reader-friendly style.
The book is a "must read" for anyone involved in or investing in the mining sector. It also fills a significant gap in the technical and professional literature with its capital markets perspective.
The Valuation of Mining Assets is an invaluable reference for finance professionals in the industry eg. those using the IFRS imposed requirements to assess fair value. Legal professionals who specialise in the mining industry will also benefit from reading the Valuation of Mining Assets.
Wayne Lonergan is a founding director of Lonergan Edwards & Associates Ltd. He has over 40 years of experience in corporate finance and valuations.
About the author
Part 1: introduction
1. How mining assets are valued – an overview
2. Defining and valuing the mining project
Part 2: financial valuation issues
3. Assessing revenue and the cost of capital
4. Foreign exchange rates
5. Determining the discount rate
6. After tax and pre tax discount rates
7. Real and nominal discount rates
8. Price earnings ratio and cash flow multiples
9. Real options
Part 3: valuation of gold mining assets
10. The impact of gold based financial instruments
11. Gold – commodity or financial asset?
12. Accounting issues relating to gold based financial instruments
13. Resources and exploration acreage
Part 4: valuation of other mining assets
14. The value of mining information
15. Separating the value of upstream and downstream assets
16. Two case studies in valuation issues
Part 5: finanical reporting issues
17. Goodwill in mining companies
18. Acquisition accounting in mining takeovers
19. Other accounting issues
20. Raising capital – the successful explorers dilemma
21. Why miners lose money in foreign exchange
Size: 250 × 176 mm
13 colour illustrations, 4 b&w illustrations, and 47 b&w tables
Publication: 22 May 2006