Chapter 19: Agricola Mining — a hypothetical example
To help put into context many of the issues discussed in this book, a simple hypothetical study is presented in this chapter. The aim is to determine the fundamental value of a company, taking into account the impact of a recent mineral discovery.
Agricola Mining1 is a hypothetical public company listed on a stock exchange. The pertinent information is as follows:
• issued capital: 70 million ordinary shares
• current share price: 50¢
• average daily turnover: $50 000
• shareholders’ funds: $25 million
• cash: $10 million
• debt: nil
• company beta: 1.1.
Exploration discovery
The company has made an important discovery of the new commodity metallica. After the initial discovery, a large infill ...
Get The Mining Valuation Handbook: Mining and Energy Valuation for Investors and Management, 4th Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
