Valtech’s valuation team has recently completed an assessment of expected credit losses (ECL) for an iron ore exploration and mining company. The commodity markets have recently become the focus of investors all over the world as the prices of commodities are soaring since late 2021. We are glad to be a trusted valuation firm for delivering valuation opinion to clients which are engaging in this sector.

Due to the long business cycle and unique business nature of this industry, the performance of expected losses assessments for those clients are very different from the way we perform for a general, fast-moving consumer goods company. Different geographical regions have their unique business practices and regulatory requirements in relation to natural resources explorations. In addition, the counterparties of our client are located in different regions of the world, these imposes challenges to us in conducting a systematic and objective expected credit losses assessment for our client. Thorough credit assessments of counterparties, together with market benchmarks had been performed in order to arrive at a reasonable conclusion that complied with the stringent financial reporting requirements.

About Valtech

Valtech Valuation is a professional valuation firm accredited with ISO-9001 in valuation advisory services. The financial market and valuation requirements are highly dynamic. We are determined to develop and maintain a quality management system to foster an environment which is sustainable and evolving continuously. Our founders stress on development of a system and workflows that our consultants are provided with necessary support and opportunities to thrive.

We are a team of professionals from multiple disciplines including audit, financial modelling, tax, internal control and surveying. Our management adheres professional excellence. Abundant resources are reserved to develop standardized policies and procedures for quality control. We have solid track record in valuation advisory for listed companies (over 100), private equity, fund managers and financial institutions. We work closely with big four and other international accounting firms, corporate finance advisors, fund managers and legal advisors.