Amapa valuation12 May 2021 16:59
Just musing to the accuracy now of the historic valuation of Amapa.
In the Anglo 2012 annual report, iron ore asset valuations: referring specifically to a different iron ore asset (Minas -Rio) in Brazil :
The valuation model employs long term iron ore prices based on detailed analysis of market fundamentals and adjusted for iron ore quality. The long term iron ore price which is used in the valuation from 2022 onwards is within the range of published analyst forecasts and is slightly above the median of $80 per tonne. (At the time the iron ore price was circa $120).
Hmm, current iron ore price is near $250.
Anglo 2012 valuation was $600M for is 70% stake
In 2011 internal Anglo documents valued its 70% of Amapa at around $1.1B, so perhaps using circa $150 per tonne for valuation?
2011 valuation based on $125 per tonne 100% = $1.5B
2021 valuation based on $250 per tonne 100%= $3bn
20% = $600M
Have I missed something obviously material?