Frequently Asked Questions

EV/Resource (Enterprise Value per Resource Unit) is a widely-used valuation methodology in the mining industry. It calculates the value of a mining project by multiplying the contained resource (e.g., ounces of gold, tonnes of copper) by a comparable transaction multiple.

The formula is:

Indicative Value = Resource Units x EV/Resource Multiple x Stage Probability x Jurisdiction Factor

This approach is favored because it:

• Provides market-based comparability across projects
• Adjusts for development stage risk
• Reflects recent transaction data
• Is transparent and auditable

JORC (Joint Ore Reserves Committee) is the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. JORC compliance means that resource estimates and valuations are prepared according to these industry-standard guidelines.

Important: MineValue.ai provides indicative estimates only. Our outputs are NOT JORC-compliant and NOT prepared by a Competent Person as defined by JORC 2012.

For JORC-compliant valuations, you must engage a qualified mining engineer or geologist who meets the Competent Person criteria.

Our estimates are indicative ranges designed for decision support, not precise valuations. Key factors affecting accuracy include:

• Input quality: Results depend on the accuracy of your resource estimates, grades, and cost data
• Market conditions: Commodity prices and transaction multiples change over time
• Project-specific factors: Unique characteristics may not be captured by comparable transaction data

We provide low/base/high ranges rather than single-point estimates to reflect this uncertainty. Always verify independently and consult qualified professionals before making investment decisions.

Your valuation report includes several key components:

• Low/Base/High Range: The estimated value range reflecting uncertainty in inputs and market conditions
• Stage Probability: Adjustment factor based on development stage (exploration to production)
• Resource Category Weighting: How Measured, Indicated, and Inferred resources are weighted
• Jurisdiction Factor: Risk adjustment based on mining jurisdiction
• Confidence Level: Overall confidence in the estimate based on input completeness

The "Base" estimate is typically the most likely scenario, while Low and High represent conservative and optimistic cases respectively.

Stage probability adjustments reflect the likelihood that a mining project will successfully reach production. Earlier-stage projects carry more risk and are valued at lower multiples:

• Early Exploration: ~10% probability factor
• Advanced Exploration: ~20% probability factor
• PEA/Scoping: ~30% probability factor
• Pre-Feasibility (PFS): ~40% probability factor
• Feasibility (DFS): ~60% probability factor
• Permitted/Construction: ~80% probability factor
• Production: ~100% (no discount)

No. MineValue.ai provides indicative model estimates for decision support. This is:

• NOT a JORC or NI 43-101 compliant valuation
• NOT prepared by a Competent Person or Qualified Person
• NOT financial or investment advice
• NOT suitable for regulatory filings

For certified valuations, you must engage qualified professionals such as registered mining engineers, geologists, or certified valuation analysts.

MineValue.ai uses multiple data sources to calculate estimates:

• Comparable Transactions: Historical M&A and financing data from mining sector transactions
• Commodity Prices: Real-time spot prices from major exchanges (LBMA, LME, COMEX)
• Jurisdiction Data: Risk ratings based on Fraser Institute surveys and government data
• User Inputs: Your project-specific resource estimates, grades, and cost data

Transaction multiples are updated quarterly based on recent comparable deals.

Commodity prices are fetched in real-time when you generate an estimate. We source prices from:

• Gold/Silver: LBMA spot prices
• Copper/Nickel: LME official prices
• Lithium: Benchmark Minerals/Asian Metal indices
• Iron Ore: Platts/TSI indices
• Uranium: UxC spot prices

Prices are displayed in your estimate and can be manually overridden if you prefer to use different assumptions.

Transaction multiples are derived from analysis of comparable mining transactions including:

• Mergers and acquisitions
• Asset purchases and sales
• Private placements and financings
• Joint venture transactions

We filter transactions by commodity, jurisdiction, and development stage to ensure comparability. Multiples are updated quarterly and adjusted for outliers.

MineValue.ai currently supports 12 jurisdictions across Australia and Canada:

Australia:

• Western Australia (WA)
• Queensland (QLD)
• South Australia (SA)
• New South Wales (NSW)
• Northern Territory (NT)

Canada:

• Ontario (ON)
• Quebec (QC)
• British Columbia (BC)
• Saskatchewan (SK)
• Yukon (YT)
• Northwest Territories (NWT)
• Nunavut (NU)

Mineral resources are classified by confidence level according to JORC/NI 43-101 standards:

• Measured Resources: Highest confidence - estimated from detailed sampling with well-established geological continuity. Weighted at 100%.
• Indicated Resources: Medium confidence - estimated with reasonable geological continuity. Weighted at 80%.
• Inferred Resources: Lowest confidence - estimated with limited sampling and assumed continuity. Weighted at 40%.

These weightings reflect the uncertainty inherent in each category when calculating indicative values.

Grade is a key driver of project economics. Higher-grade deposits typically command premium valuations because they:

• Generate higher revenues per tonne processed
• Have lower unit operating costs
• Require less waste handling
• Are more resilient to commodity price downturns

Our model assesses grades relative to industry benchmarks for each commodity and applies grade adjustment factors (typically 0.8x to 1.2x) based on whether the grade is below or above average.

AISC (All-In Sustaining Cost) is a comprehensive cost metric that includes:

• Direct mining and processing costs
• General and administrative expenses
• Sustaining capital expenditure
• Exploration costs to maintain reserves
• Royalties and production taxes

AISC is expressed per unit (e.g., $/oz for gold) and indicates the cost to produce the commodity. Lower AISC generally results in higher project valuations as margins are better.

Capital expenditure (CAPEX) represents the upfront investment required to develop a mining project. In EV/Resource methodology:

• Higher CAPEX requirements typically reduce indicative values
• CAPEX intensity (CAPEX per unit of production) is compared to benchmarks
• Projects with lower CAPEX per annual production unit receive premium multiples

If you have CAPEX data available, entering it improves estimate accuracy. Otherwise, the model uses commodity and stage-based assumptions.

Yes! While the free estimate provides a single calculation, you can manually run sensitivity analysis by:

• Changing commodity price assumptions
• Adjusting resource estimates
• Modifying grade inputs
• Testing different development stages

Our Professional Report (coming soon) will include automated sensitivity analysis with tornado charts and scenario comparisons.

Yes! The basic indicative estimate is completely free and always will be. You get:

• Low/Base/High value range
• Key assumptions documented
• Risk factor breakdown
• Methodology explanation
• Confidence indicators

Premium features like PDF reports, sensitivity analysis, and API access will be available for a fee (coming soon).

The Professional Report (coming soon at $999/report) will include:

• Everything in the free estimate
• Downloadable PDF report
• Sensitivity analysis and tornado charts
• Comparable transaction details
• Investor-ready formatting
• 30-day access to update assumptions

Join the waitlist to be notified when it launches.

The Broker Plan (coming soon at $1,999/month) is designed for mining analysts, investment banks, and corporate advisory firms:

• Unlimited estimates
• White-label PDF reports with your branding
• API access for integration
• Custom branding options
• Priority support
• Bulk processing capabilities

Contact sales for early access.

Due to the nature of the service (digital delivery of valuation estimates), we generally do not offer refunds once an estimate has been generated.

However, if you experience technical issues that prevent you from receiving your estimate, please contact us and we will resolve the issue or provide a refund.

We recommend trying the free estimate first to ensure the tool meets your needs before purchasing premium features.