Valtech’s valuation team has recently completed a valuation for a listed company for its financial reporting in a gold mining business. We are glad to be a trusted valuation firm for delivering valuation opinion to the listed clients.

Various market benchmarks have been analysed before we arrive at the conclusion.

Despite the ever-fluctuating gold price in the commodity market, it is surprisingly to discover that the gold price level is more or less the same throughout the year 2021. The gold price was recorded in Bloomberg terminal at USD 1,898 and USD 1,829 per troy ounce as at 31 December 2020 and 31 December 2021 respectively, indicating a mere 3.6% drop in the year. The ups and downs of gold price movement may provide investor a delusion that their gold investment might have gained some profit yet eventually the gold investment itself needs to be tested for its recoverability.

Other than the changing gold price in the market, investors’ sentiment towards the gold investment is also facing a flip in the past year. Investment in gold mines was once popular among the market participants in 2019 of which they would like to spend large amount of money investing in the gold mining operation company for a share split in view of the rocketing gold price at that time. However, the increasing trend of gold price stopped in 2020, while more government policies were implemented on gold mining companies, the return on these companies seems less tempting. After a rather tranquil transaction market of gold mine took place in 2020, such transactions surged in 2021 again yet with low valuation multiples. It is observable that the popularity on gold mining industry is fading with market participants’ attention might be drawn to abundant of alternative investment available in the market now.

Looking into the future prospect, Valtech is still in faith that gold mining business shall be promising as inflation around the globe is anticipated in coming years based on economic recovery from pandemic and change of monetary policies, gold price as good investment against inflation shall eventually be grabbing market’s eyeballs and so as the investment opportunity in gold mining business.

Why Valtech?

Valtech’s team has provided valuation advice to over 200 listed companies in Hong Kong, China, Singapore, Taiwan, Australia, the United Kingdom, the United States and Germany.

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, private equity, fund managers and financial institutions. We work closely with big four and other international accounting firms, corporate financial advisors, fund managers and legal advisors.