Valuation Support for Mining Companies

Valtech has successfully conducted various valuations in mining sector including copper and gold mines, and a coalbed methane extraction project for listed companies on the Stock Exchange of Hong Kong (HKEx) for disclosure purpose and providing objective evidence that supports decision making. Valtech also provides solid mining valuation support in Singapore. These valuations adhere to the industry standards and best practices. Recognizing the growing demand for transparency in mining investments and increased regulatory oversight, Valtech is committed to delivering more cost-effective and timely updates on valuations and enhancing its valuation opinions with robust quantitative analysis.

To broaden its service offerings, Valtech has introduced diverse work plans tailored to meet the specific needs and objectives of its clients. For instance, many mining companies acknowledge the importance of keeping resource and reserve reports updated for the value of a mining project. Understanding that this updating process can be both time-consuming and costly, Valtech has leveraged improved communication technology to offer not only traditional site inspections but also video tours of minefields and management interviews. Furthermore, Valtech has incorporated statistical models to analyse mining production data, providing objective support for financial projections.

Outlook and Opportunities for mining in 2024

Maintaining an optimistic outlook on mining investment demand in 2024, Valtech also remains vigilant about the escalating complexity of Environmental, Social, and Governance (ESG) risks in evaluating opportunities within the mining sector. Valtech believes the People’s Republic of China’s pivotal role in 2024 would be emphasizing infrastructure spending as a strategic tool to manage growth and alleviate fiscal pressures while working towards its carbon targets. Despite the mining sector being poised to face various obstacles from global economic challenges, such as geopolitical uncertainties and inflationary pressures, but historical evidence underscores its resilience and ingenuity. This is a key factor driving Valtech’s focus on long-term development in valuation consulting within the sector.

Valtech’s Distinct Expertise in Mining Valuation

Valtech team has hand-on experience in different minerals including precious metals of gold, silver, platinum; nonferrous metals such as copper, lead, zinc, nickel, cobalt, tin, antimony; ferrous metals such as iron, manganese and chromium; energy resources such as oil and gas; and other minerals such as marble, graphite and uranium. With a consulting team boasting solid track records of dealing with mining projects, Valtech emphasizes the complexity and specialization inherent in the mining project valuation process. Keith Lui, Associate Director of Valtech, stresses the need for a deep understanding of mineral resources codes, including VALMIN Code and JORC Code, along with project technical aspects. Unlike conventional valuation approaches, formal engagements involve a thorough analysis of the competent persons’ report and the project feasibility report, which contain detailed information and key assumptions about the project’s reserves, resources, production, costs, and risks. The evaluation of reserves and resources takes into account both quality and quantity, with factors such as metal grading and minefield size influencing profitability.

The factors differentiating Valtech from its peers, including an in-house PhD-level expert with a mining advisory background, a solid track record covering a wide range of minerals, an extensive network and cooperation with technical experts, and a concrete minefield transaction database encompassing private and public deals. Our team’s recognition by experts is attributed to their understanding of not only accounting and finance but also the intricacies of the mining business and technical report matters.

Max Tsang, Director of Valtech

About Valtech Valuation

Originally founded and headquartered in Hong Kong, Valtech expanded into Singapore in 2023, providing comprehensive coverage for both the Greater China and Southeast Asia markets. With a well-designed consulting workflow, proprietary applications, and an ISO 9001 certified quality management system, Valtech’s consulting team now serves clients not only in Hong Kong but also in Mainland China, Singapore, and Southeast Asia. The company has successfully completed valuation projects for Middle East-based companies and US-listed firms.

Valtech’s qualified team comprises members with PhDs, CPA (HKICPA), CFA, Chartered Valuation Surveyors of the Royal Institution of Chartered Surveyors, and valuers accredited with Business Valuation (ABV) by AICPA and CVA qualifications in Singapore. Valtech continues to expand into more markets by leveraging its valuation platform and recruiting local experts.