Valuation of Mining Company Acquisitions

This paper examines the methods and people required for the evaluation of project or corporate acquisitions. Experience over the past five years has shown that some growth can be achieved by carefully evaluated acquisition of gold projects within regions where the acquiring company has gold processing facilities. Many Western Australian companies have participated in this process and the trend seems likely to continue with a diminishing number of larger producing companies controlling through joint venture or direct purchase of widely spaced ore deposits. In some cases the acquisition may include ore processing facilities, however an increasing number of smaller project acquisitions, involving small open pit gold deposits, which are within trucking distance of the acquiring company's mill. Whilst gold prices remain at the current depressed level we can expect to see this trend continue.