This is an Australasian standard. Were it prepared according to SEC standards I guarantee you Corporate Costs (so G&A and Finance) are excluded from SEC PV10 as it is an ASSET valuation. There are also a plethora of additional items that would need to be disclosed. About the only thing "reliable" here is the the SPE estimates of volumes of Reserves. As for Contingent Resources ... good luck with them.
Absent from this report with respect to $value are pretty much all the details (disclosed is just the "summary"). Taken directly from the VALMIN standard. Who wants to hazard a guess to the following.
Estimates of capital costs are likely to include, but are not be limited to:
(i)
feasibility and associated studies costs,
(ii)
acquisition cost,
(iii)
construction, implementation and commissioning costs,
(iv)
working capital,
(v)
owner’s cost,
(vi)
sustaining capital,
(vii)
decommissioning, rehabilitation and site restoration costs,
(viii)
contingency allowance, and
(ix)
a stated level of accuracy of cost estimates.
Estimates of operating costs are likely to include but are not limited to:
(i)
workforce employment,
(ii)
consumables and spare parts,
(iii)
power, water and other services,
(iv)
contract services,
(v)
equipment lease and hire,
(vi)
on-site and off-site administration,
(vii)
environmental protection and monitoring, and non-capitalised rehabilitation,
(viii)
transport and accommodation of workforce,
(ix)
social and community programs,
(x)
product marketing, transport and realisation,
(xi)
taxes, royalties and other governmental charges,
(xii)
contingency allowance, and
(xiii)
a stated level of accuracy of cost estimates.
Services and infrastructure to be considered include power, water supply, transport, communications, security, workforce accommodation, housing, medical services and waste and tailings treatment and/or disposal facilities. The Public Report should also review any access and terrain conditions that may affect the logistics of exploration and development.
7.6. Revenue
(a)
Assumptions
A Public Report should assess the Mineral Asset’s potential revenue stream over an appropriate period.
Where a Public Report includes information relating to forecast revenue, it must set out a reasonable basis for price-related assumptions applying to any product(s) derived from the Mineral Asset.
The price-related assumptions may include, but are not limited to:
(i)
forecast product prices, smelter treatment and refinery charges, current and forecast
market conditions and the likely quantity and quality of product,
(ii)
penalty and premium components of the product,
(iii)
variation in product price and basis and source of forecast product prices used,
(iv)
size, nature and location of markets,
(v)
commodity market imbalances and pricing discounts or premiums,
(vi)
sales volumes,
(vii)
price escalation,
(viii)
exchange rates,
(ix)
hedging or forward sales contracts, and
(x)
residual value.
AKK Price at posting:
0.6¢ Sentiment: None Disclosure: Not Held
