How to Attend: The seminar is complimentary. Please register for it by Tuesday, April 29, 2025 to secure your place. RSVP via Eventbrite (click HERE) if you are interested in attending it.
We want to thank the CIM Foundation for generously sponsoring this event as part of the CIM Distinguished Lecturers series.
For its Wednesday, April 30, 2025, Discussion Group seminar, CIM’s Management and Economics Society is pleased to welcome:
William (Bill) E. Roscoe, PhD, MSc, BSc (Eng.), FCIM
Principal Geologist, SLR Consulting
Co-Chair, CIM Committee for Valuation of Mineral Properties (CIMVAL) and Executive Committee, International Mineral Valuation Committee (IMVAL)
who will deliver an online presentation on:
Is the Net Present Value of a Preliminary Economic Assessment Indicative of the Market Value of a Mineral Property?
Abstract: A Preliminary Economic Assessment (PEA) is often the initial evaluation of a mineral property after mineral resources have been delineated. The main purpose is to determine if the property offers sufficient encouragement to justify further expenditures to collect more data for more rigorous economic analysis. A discount rate of 5% is commonly used for cash flow analysis in the PEA to calculate the Net Present Value (NPV). Is the NPV at this discount rate indicative of the market value of the property?
To investigate this question, my colleagues and I compiled information on numerous properties with PEAs over the past decade. For those properties that were bought and sold, we compared the NPV of the PEA with the market value of the transaction on each property. For properties that did not transact, we compared the NPV with the adjusted market capitalisation of the company for which the property was its major asset.
We observed that the NPVs in the PEAs were significantly higher than both the market values of the transactions and the adjusted market capitalisations. We concluded that to bring the NPV into line with the market value and market capitalisation, a discount rate in the order of 15% to 20% would be required.
About our presenter:
BIO: Dr. William (Bill) E. Roscoe is a Geologist with more than 50 years of experience in the mining industry in Canada and internationally. After working as an exploration geologist and consultant, he co-founded Roscoe Postle Associates Inc. (RPA) in 1985. He served as President, Chairman, and Chairman Emeritus until its acquisition by SLR Consulting in 2019. He was instrumental in growing RPA into a nationally and internationally recognised geological and mining consulting firm with offices in Toronto, Vancouver, Denver, and London (UK).
Since 1999, Bill has been Co-Chair of the CIM Special Committee on Valuation of Mineral Properties (CIMVAL). The CIMVAL Standards are now globally recognised and referenced by the TSX-V and other international stock exchanges. He represents CIMVAL on the International Mineral Valuation Committee (IMVAL) and is a past Chair.
Dr. Roscoe has published many papers and given numerous presentations and workshops over the past 40 years in Canada and internationally on the valuation of mineral properties and mineral resource estimation. He taught a course for five years on Mineral Resource Estimation as an Adjunct Professor at the University of Toronto.
Bill Roscoe has a BSc (Eng.) from Queens University and MSc and PhD degrees from McGill University (all in Geological Sciences). He is a PEng. in Ontario and British Columbia and a Life Member of CIM, PDAC, and Association of Mineral Exploration BC.
Please join us!
Wednesday, April 30, 2025, at 3:30pm ET (12:30pm PT)
Sponsored by:
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