Valuation of exploration properties
- Client Name
- Kinross Gold Corporation
- Location
- Multiple
- Mining advisory
- Mine technical services
Challenge
SLR was retained to independently determine a range of values for Kinross’ exploration properties for annual impairment testing purposes.
Solution
Kinross relies on SLR to determine a range of values attributable to the exploration portion of its properties worldwide. SLR compiles recent market transactions on exploration properties for gold and uses the comparable transaction method to determine a range of values on a $/hectare basis for properties in the USA, Canada, Chile, Brazil, Russia, Mauritania, and Ghana.
The value of any of Kinross’ properties is a function of its size, exploration potential rating, and the $/hectare value range determined for nonproducing gold properties in the jurisdiction involved.