A framework for interfacing mineral asset valuation and financial reporting

G. Njowa and C. Musingwini

Resources Policy, 2018, vol. 56, issue C, 3-15

Abstract: Mineral Resources and Mineral Reserves are collectively the single most significant asset or among the most significant assets for any company in the minerals industry, yet their value is often not reflected on primary financial statements of the company. This challenge arises from the misalignment between financial reporting and mineral asset valuation (MAV). Mineral Resources and Mineral Reserves can be valued using MAV methodologies that generally have a forward-looking perspective, while financial reporting on the other hand is conducted based on a generally historical performance perspective of the company in compliance with International Financial Reporting Standards (IFRS) or Generally Accepted Accounting Principles (GAAP) depending on the jurisdiction.

Keywords: Mineral project evaluation; Mineral asset valuation; Financial reporting; Market capitalization; Enterprise value (EV); Investment banking model (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:56:y:2018:i:c:p:3-15

DOI: 10.1016/j.resourpol.2017.09.004

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