545-0188/01 – Valuation of mineral deposits (OLNS)

Gurantor departmentDepartment of Economics and Control SystemsCredits5
Subject guarantorDr. Ing. Petr WelserSubject version guarantorDr. Ing. Petr Welser
Study levelundergraduate or graduateRequirementCompulsory
Year2Semesterwinter
Study languageCzech
Year of introduction2021/2022Year of cancellation
Intended for the facultiesHGFIntended for study typesFollow-up Master
Instruction secured by
LoginNameTuitorTeacher giving lectures
BOR200 Ing. Petr Bora, Ph.D.
WEL01 Dr. Ing. Petr Welser
Extent of instruction for forms of study
Form of studyWay of compl.Extent
Full-time Credit and Examination 2+2
Part-time Credit and Examination 8+8

Subject aims expressed by acquired skills and competences

The student will be able to explain the process and methodology of valuation of mineral deposits. The student will be able to apply the valuation methodology to a given deposit of minerals. The student is able to quantify the discount rate in relation to risks. The student understands the expert opinion and is able to interpret its conclusions.

Teaching methods

Lectures
Tutorials
Project work

Summary

The course is focused on the processes of valuation of mineral deposits. Students will gradually get acquainted with the relevant legislation and the basic structure of the process of valuing reserved and non-reserved deposits in the Czech Republic. Relevant valuation methods, including methods of determining the discount rate, are explained to students. An integral part of the course are also case studies in which the student acquires the methodology of valuation of real estate and movable property, the existence of which is an infrastructural condition for the implementation of opening, mining and processing processes in a mining company. All knowledge used in teaching respects the applicable mining legislation, legislation for property valuation and is based on current best practice

Compulsory literature:

BORA, Petr, Michal Vaněk a Kateřina Špakovská. RISK PREMIUM AND COST OF CAPITAL: APPLICATION IN MINING INDUSTRY. Košice: Technická univerzita v Košiciach, 2015, 76 s. ISBN 978-80-553-2261-2. KOLLER, T., GOEDHART, M., WESSELS, D. Valuation: Measuring and Managing the Value of Companies. 7th edition. John Wiley & Sons, 2020. ISBN: 978-1-1196-1088-5. SINHA, Naresh Kumar a N. L. SHARMA. Mineral economics. Fourth edition. New Delhi: OxBULLOCK, Richard L. a Scott MERNITZ, ed. Mineral property evaluation: handbook for feasibility studies and due diligence. Englewood, Colorado: Society for Mining, Metallurgy & Exploration, [2018]. ISBN 978-0-87335-445-5.ford & IBH Publishing Co. Pvt. Lld., [1988]. ISBN 81-204-0331-2.

Recommended literature:

BLACKLEDGE, M. Introducing Property Valuation. 2nd Edition, Routledge, 2016. ISBN: 978-1-1389-2995-1. VENTOLO, W. L., WILLIAMS, R. M. Fundamentals of Real Estate. Appraisal 13th Edition. Dearborn Trade Pub, 2018. ISBN: 978-1-4754-6380-4. The JORC Code 2012 Edition. Pan-European Code for Reporting of Exploration Results, Mineral Resources and Reserves (PERC).

Way of continuous check of knowledge in the course of semester

Prezentace výsledků seminární práce. Předmět zakončen písemnou a ústní zkouškou.

E-learning

Pro e-learning je využíván univerzitní elektronický výukový systém Moodle (lms.vsb.cz).

Other requirements

Active participation in the semester project.

Prerequisities

Subject has no prerequisities.

Co-requisities

Subject has no co-requisities.

Subject syllabus:

1. Fundamentals of mining and geological legislation 2. The complete production cycle in mining and its operational and investment financing 3. Legislative framework of property valuation in the Czech Republic 4. Valuation of property in the mining industry, valuation principles 5. Basic terminology in the valuation of deposits and mining companies 6. System concept of valued deposit and mining company 7. International Valuation Standards IVSC 2000 8. Methodology of valuation of deposit and property of mining company 9. Principles of determining the value of a mining company 10. Yield methods, calculation of free cash flow - FCFE method 11. Approaches to determining the discount rate and capitalization rate for real estate 12. Analytical relations for determining the value of deposit reserves 13. Syllabus of expert opinion on the valuation of the deposit and the value of the mining company's property 14. Case study of mining company valuation - list of initial documents

Conditions for subject completion

Conditions for completion are defined only for particular subject version and form of study

Occurrence in study plans

Academic yearProgrammeField of studySpec.ZaměřeníFormStudy language Tut. centreYearWSType of duty
2022/2023 (N0724A290011) Mineral Economics NS P Czech Ostrava 2 Compulsory study plan
2022/2023 (N0724A290011) Mineral Economics NS K Czech Most 2 Compulsory study plan
2022/2023 (N0724A290011) Mineral Economics NS K Czech Ostrava 2 Compulsory study plan
2021/2022 (N0724A290011) Mineral Economics NS P Czech Ostrava 2 Compulsory study plan
2021/2022 (N0724A290011) Mineral Economics NS K Czech Most 2 Compulsory study plan
2021/2022 (N0724A290011) Mineral Economics NS K Czech Ostrava 2 Compulsory study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner