RE: Valmin Code3 Jun 2022 10:56
If this does indeed go to arbitration it is clear from the Valmin Code (extract below) that all of our 2.9 million ounces equivalent in the Probable category may be used when assessing the 5% valuation but a discount factor may be applied to the remaining 3.6 million ounces still to be classified as Proved or Probable. That is if the independent expert deems that it is appropriate to include them. A lot of subjectivity which is why there appears to be stalemate between the 2 parties at present. Hardly surprising they can't yet get within 20% of each other's valuation.
******************************************************
8.5. Use of Ore Reserves and Mineral Resources
All Ore Reserves and Mineral Resources must be considered in a Technical Assessment or Valuation. When the Reasonable Grounds Requirement has been met for a Valuation, it is generally acceptable to use all Proved and Probable Ore Reserves in the Income Approach. It may sometimes be appropriate to include other classifications, but these must, subject to the Reasonableness Test:
(a) meet the minimum reporting requirements of the ASX Listing Rules and guidance, the ASIC Regulatory Guidelines
and guidance, and the JORC Code;
(b) not include Exploration Targets that have not been converted to Production Targets;
(c) be scheduled for extraction behind Proved and Probable Ore Reserves, where practical to do so;
(d) include a statement by the Specialist that confirms the appropriateness of the Modifying Factors along with a
description of their level of certainty relative to those of a Feasibility Study or Pre-Feasibility Study; and
(e) be discounted in a manner that is commensurate with the increased uncertainty
Sign In
Follow the stocks
