Kees Dekker, Mining Analyst/Mineral Economist.
MSc (Geochemistry), BCom, MBA, Pr.Sci.Nat
This report first gives a background to the company reviewing its corporate history, share price performance and operational and financial performance. It will then review of each operation controlled by the company the technical background which will serve to draw up a cash flow model. Going through and analysing the technical information is required to allow the analyst to determine whether or not the economic input parameters used are realistic.
The value of the company, based on the share price on the same day as the day prices (called spot prices) of gold, and diluted for warrants and share options that would be exercised at such a share price, is compared to the intrinsic value of the company based on discounted net free cash flow from the operations.
This study serves to give the reader a holistic view of what is required when evaluating mining companies.
Validated by: iPet
This article is validated for 0.1 CPD credits in category 1.