INTERNATIONALMINERAL
VALUATIONCOMMITTEE(IMVAL)

INTERNATIONAL MINERALPROPERTY VALUATIONSTANDARDS TEMPLATE("IMVAL Template")(Includes Petroleum)
Fourth Edition
April 14, 2021

The IMVAL Template is a standards and guidelines template created for the harmonisation ofInternational Mineral Valuation Codes and Standards

iContents
1. BACKGROUND ..................................................................................................................................................... 1
1.1

History ....................................................................................................................................................... 1

1.2

Committee Structure ................................................................................................................................ 2

1.3

Template Purpose ..................................................................................................................................... 2

1.4

Terminology .............................................................................................................................................. 2

1.5

Disclaimer .................................................................................................................................................. 3

2. REQUIREMENTS .................................................................................................................................................. 3
2.1

Principles ................................................................................................................................................... 3
2.1.1

Competence ............................................................................................................................. 3

2.1.2

Materiality ................................................................................................................................ 3

2.1.3

Transparency ............................................................................................................................ 4

2.1.4

Objectivity ................................................................................................................................ 4

2.1.5

Independence .......................................................................................................................... 4

2.1.6

Reasonableness ........................................................................................................................ 4

2.2

Identification of the Property and Interest Being Valued........................................................................ 4

2.3

Scope of Work .......................................................................................................................................... 4

2.4

Intended Use and Intended Users............................................................................................................ 4

2.5

Mineral Resources and Mineral Reserves ................................................................................................ 5

2.6

Highest and Best Use ................................................................................................................................ 5

2.7

Basis of Value ............................................................................................................................................ 5

2.8

Valuation Approaches............................................................................................................................... 5

2.9

Responsibilities of Valuer ......................................................................................................................... 5

2.10 Valuation Report....................................................................................................................................... 6
3. GUIDANCE ........................................................................................................................................................... 7
3.1

Competence .............................................................................................................................................. 7

3.2

Materiality ................................................................................................................................................. 7

3.3

Transparency ............................................................................................................................................. 8

3.4

Objectivity ................................................................................................................................................. 8

3.5

Independence............................................................................................................................................ 8

3.6

Reasonableness ......................................................................................................................................... 8

3.7

Identification of the Property and Interest Being Valued........................................................................ 9

3.8

Levels of Valuation Research and Valuation Reporting ........................................................................... 9

3.9

Valuation Process ..................................................................................................................................... 9

4. DEFINITIONS ...................................................................................................................................................... 10
4.1

Appraisal.................................................................................................................................................. 10

4.2

Basis of Value .......................................................................................................................................... 10

4.3

Commissioning Entity ............................................................................................................................. 10

4.4

Competence or Competent .................................................................................................................... 10

4.5

Cost Approach......................................................................................................................................... 10

4.6

Effective Date.......................................................................................................................................... 10

4.7

Evaluation ................................................................................................................................................ 10

4.8

Expert ...................................................................................................................................................... 10

4.9

Fair Market Value ................................................................................................................................... 10

4.10 Fair Value ................................................................................................................................................ 11
4.11 Income Approach.................................................................................................................................... 11
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4.12 Independence or Independent............................................................................................................... 11
4.13 Inputs................................................................................................................................................ 11

4.14 Investment Value .................................................................................................................................... 11
4.15 Market Approach .................................................................................................................................... 11
4.16 Market Value .......................................................................................................................................... 11
4.17 Materiality or Material ........................................................................................................................... 11
4.18 Mineral Property .................................................................................................................................... 11
4.19 Mineral Resources and Mineral Reserves .............................................................................................. 124.20 Minerals Industry .................................................................................................................................... 124.21 Objectivity ............................................................................................................................................... 124.22 Petroleum Resources and Petroleum Reserves ..................................................................................... 124.23 Professional Organisation....................................................................................................................... 124.24 Public Report........................................................................................................................................... 124.25 Real Property Interest ............................................................................................................................. 124.26 Reasonableness ....................................................................................................................................... 13
4.27 Report Date............................................................................................................................................. 13
4.28 Special Assumption ................................................................................................................................. 13
4.29 Special Purchaser .................................................................................................................................... 13
4.30 Special Value ........................................................................................................................................... 13
4.31 Synergistic Value..................................................................................................................................... 13
4.32 Transparency ........................................................................................................................................... 13
4.33 Valuation ................................................................................................................................................ 13
4.34 Valuation Approach ................................................................................................................................ 13
4.35 Valuation Date ........................................................................................................................................ 13
4.36 Valuation Method................................................................................................................................... 13
4.37 Valuation Report..................................................................................................................................... 14
4.38 Value................................................................................................................................................ 14

4.39 Valuer................................................................................................................................................ 14

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1.

BACKGROUND
1.1

History
Prior to the development of this international template (the Template), there was no common
template or standard for mineral property valuation. Instead, three national codes or standards
existed, being CIMVAL (Canada), SAMVAL (South Africa), and VALMIN (Australasia). Althoughthese codes have many similarities, they have differences in structure, definitions, scope, andjurisdictional requirements. Minerals while in the ground are considered as a part of Real Estate.
The International Valuation Standards ( IVSs) and the USA’s Uniform Standards of Professional
Appraisal Practice (USPAP) also contain valuation standards of general application non-specific tomineral property valuation.
The following is a brief chronology of the evolution of mineral property valuation standards
leading up to the development of this Template:
1.

The Australasian VALMIN Code, currently titled Australasian Code for Public Reportingof Technical Assessments and Valuations of Mineral Assets, was first adopted by The
Australasian Institute of Mining and Metallurgy (AusIMM) in February 1995. A numberof revisions have since been published, including the latest in 2015.

2.

The International Valuation Standards Council (IVSC) convened an Extractive
Industries Task Force of international mining and petroleum industry valuation
experts in early 2001.

3.

The Canadian Institute of Mining, Metallurgy and Petroleum (CIM) adopted the
CIMVAL Standards and Guidelines for Valuation of Mineral Properties in February 2003.
An updated CIMVAL Code for Valuation of Mineral Properties was adopted by CIM
Council on November 29, 2019, and supersedes the 2003 version.

4.

The IVSC’s Guidance Note 14 (GN 14), Valuation of Properties in the Extractive
Industries, was first published in January 2005, in the IVSs Seventh Edition. It was
republished in 2007 in the Eighth Edition. The IVSC Standards Board withdrew GN 14
in February 2010.

5.

The South African SAMVAL Code, titled The South African Code for the Reportingof Mineral Asset Valuation, was developed through a Working Group under the
SAMCODES Standards Committee and was first published in April 2008. An
amendment was issued in July 2009 and an updated SAMVAL Code was issued in 2016.

6.

Discussions were held in Brisbane in April 2012 to establish a harmonisation project
for the mineral valuation codes, VALMIN, SAMVAL, and CIMVAL, and when andwhere appropriate, USPAP, the IVSs, and the IFRSs (International Financial ReportingStandards).

7.

The International Mineral Valuation Committee (IMVAL) was formed in July 2012, withthe goal of developing a mineral asset valuation template along the lines of theInternational Reporting Template of the Committee for Mineral Reserves
International Reporting Standards (CRIRSCO).

8.

In July 2016, the IMVAL Template was first published and was updated in 2018 as thethird version of the IMVAL Template.

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1.2

9.

The USA-based Society for Mining, Metallurgy, and Exploration, Inc. (SME) publishedits first edition of the SME Valuation Standards in January 2016. The USA-basedInternational Institute of Mineral Appraisers (IIMA) adopted the Second Edition of the
Template in 2015 and subsequently formally adopted the Third Edition.

10.

The First and Second Editions of the IMVAL Template referenced the IVSs 2013 edition
and the Third Edition referenced the IVSs 2017 Edition. This Fourth Edition of the
IMVAL Template has been updated to reference the IVSs which came into force on
January 1, 2020.

Committee Structure
IMVAL, which has developed this Template, is an international committee comprised ofrepresentatives of SAMVAL (South Africa), CIMVAL (Canada), VALMIN (Australasia), the SME
Valuation Standards Committee (USA), and IIMA (USA based). Representatives of the Royal Instituteof Chartered Surveyors (RICS, Global) were also involved in the early deliberations of IMVAL.

1.3

Template Purpose
The Template is intended as a principles-based template to be recognised as a common set ofminimum requirements for national codes or standards concerning the valuation of Real Property
mineral assets (Mineral Property). The Template represents a consensus of current goodpractices and is expected to be updated from time to time. The Template is not intended to be astand-alone reporting code, and does not supersede existing national reporting standards.
The Template outlines principles, requirements, guidelines, and definitions broadly consistent
with those adopted in the regulatory jurisdictions represented by IMVAL members.
Mineral Property is defined in the Template to include petroleum properties, which may be
excluded at the option of individual countries as specified in their respective national codes orstandards.
The Template is intended to align with the generally accepted valuation concepts, principles, anddefinitions set forth in the IVSs 2020 Edition. References to IVS's Scope of Work, Investigations
and Compliance, Reporting, Bases of Value and Valuation Approaches and Methods, if made, aremade throughout the Template with the prefix “IVS,” and are numbered as per the 2020 Edition.
The Template deals with Valuation, which is distinct from Evaluation. The distinction inherent inthese defined terms is that Valuation addresses the estimation of value of a Mineral Property,
whereas Evaluation addresses the broader assessment of a Mineral Property for an investment
decision.

1.4

Terminology
The following terminology conventions are used throughout Sections 1 to 4:•

The word ‘must’ denotes a requirement that is mandatory for the Valuation
Report and the contained opinion of Value to be compliant with the Template,provided that it does not result in a breach of law or a requirement of a
relevant securities exchange or other regulatory body.

•

The use of the word ‘should’ or ‘may’ indicates that some discretion may
be employed. This discretion depends on the particular circumstances,provided that the fundamental principles are not transgressed.
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1.5

•

A word having a capital first letter is generally a term defined in Section 4.

•

The singular includes the plural and vice versa.

•

A reference to another standards document does not mean that the preceding
text is directly quoted from that standard unless the text is formatted as aquotation.

Disclaimer
The legal and regulatory requirements of the relevant jurisdiction take precedence over thisdocument. The Valuer must comply with the relevant jurisdiction’s requirements.

2.

REQUIREMENTS
This section covers the minimum requirements for a national code or set of standards to align with
the Template. Some additional requirements specific to defined terms are included within thedefinitions in Section 4.

2.1

Principles
The three fundamental principles that must be followed in undertaking Valuations and Valuation
Reports are Competence, Materiality, and Transparency. In addition to these fundamental
principles, Objectivity, Independence, and Reasonableness may also apply under national codes
or standards.

2.1.1 Competence
A Valuer must be able to demonstrate to the Commissioning Entity and those entitled
to rely on a Valuation Report that the Valuer is sufficiently Competent to prepare
or contribute to the Valuation Report. A Valuer must be clearly satisfied that they
are able to face their professional peers and demonstrate Competence in the
Valuation undertaken. Among other things, Valuers should assess their competence
regarding the subject Mineral Property, the market in which the property would
trade, and the purpose of the Valuation. See also IVS Framework, Section 50
Competence.
A Valuer who is not personally Competent to undertake an aspect of a Valuation
assignment must seek assistance from an Expert who is Competent in the applicable
field or discipline necessary to address that aspect. Material assistance from Experts
must be disclosed in the Valuation Report. See also IVS Framework, Section 50
Competence.

2.1.2 Materiality
A Valuation must address all Material information. All Material information must be
included or adequately referenced in the Valuation Report. Materiality is the principlethat determines whether certain information is relevant to the Valuation.
Materiality applies to the nature of the items assessed and their influence on thequantum of a Valuation.
The Valuer must clearly set out all Material assumptions regarding the input
parameters, risks, limitations, and the associated effects in the Valuation Report. See
also IVS 103 Reporting, Section 30 Valuation Reports.
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2.1.3 Transparency
The Valuation process and Valuation Report must be Transparent, such that it must
be clear and unambiguous and therefore understandable.

2.1.4 Objectivity
The Valuer must approach a Valuation with Objectivity. This is promoted by anenvironment that is supported by data and minimises the influence of subjective
factors, such as the Valuer's personal bias, on the Valuation process. See also IVS
Framework, Section 40 Objectivity

2.1.5 Independence
For certain Valuations, Independence may be required by law, a national code or
standards, or by the circumstances of the Valuation. In these cases, Independencemeans that the Valuer must have no pecuniary or beneficial interest in theCommissioning Entity, the Mineral Property being valued, other parties involved in atransaction on the Mineral Property, or the outcome of the Valuation, other thanprofessional fees and disbursements related to the Valuation that are notcontingent on the opinion in the Valuation.

2.1.6 Reasonableness
The Valuer must ensure the Reasonableness of the Valuation. Any Valuation,
assumptions applied, and any method relied upon should be reasonable within
the context of the purpose of the Valuation and the Basis of Value. A method applied
to the subject Mineral Property should be within the expected capability andconsideration of an assumed likely buyer or lessee of the property. See IVS 104 Basesof Value, Section 200 Assumptions and Special Assumptions.

2.2

Identification of the Property and Interest Being Valued
The Mineral Property, including the interest or right that is the subject of the Valuation, must be
described in adequate detail to identify the property and the physical, legal, and economic
characteristics relevant to the Valuation. This description is required in particular when thesubject of the Valuation is economically interdependent with other properties, in which case theassumption for the Valuation of whether those other properties will or will not remain available
must be stated.

2.3

Scope of WorkThe Scope of Work to be performed in developing the Valuation should be determined between
the Valuer and the Commissioning Entity, which must be identified unless confidential. The Scope ofWork necessary to develop a credible Valuation can vary considerably depending on thesubject Mineral Property, the purpose of the Valuation, the Basis of Value, the Valuation Date,and the intended use of the Valuation. Modification of the Scope of Work may be necessaryduring the Valuation process. A Scope of Work section must be included in the Valuation Report,
describing the extent of investigations conducted and stating any limitations on thoseinvestigations. See IVS 101 Scope of Work.

2.4

Intended Use and Intended Users
The intended use and intended users of the Valuation Report must be clearly disclosed unlessconfidential.
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2.5

Mineral Resources and Mineral Reserves
When resources or reserves of the subject Mineral Property are used or referred to in a
Valuation or Valuation Report, they should use the Mineral Resource and Mineral Reserve
definitions of: (1) in the case of non-petroleum minerals or commodities, codes based on CRIRSCO,
or an associated institute’s definitions, or definitions in SK-1300 of the US Securities and Exchange
Commission; and (2) in the case of petroleum, the Petroleum Resource and Petroleum Reserve
definitions of the Petroleum Resources Management System (PRMS). If the CRIRSCO or PRMS
systems are not used, the Valuation Report must explain why not and should provide, to theextent possible, a reconciliation of the resources and reserves with CRIRSCO or PRMS.

2.6

Highest and Best Use
Where applicable, the Market Value of a Mineral Property must be estimated with considerationof its highest and best use (generally its stage of development) on the Valuation Date. The
highest and best use of a property, determined sequentially, is that stage of use which is (1)legally permissible, (2) physically possible, (3) financially feasible on the Valuation Date, andwhich (4) maximises the potential of the Mineral Property. The highest and best use for a Mineral
Property, being the use that a market participant would have in mind for the property when
formulating the maximum price it would be willing to offer, may be the same as its current use, amodification of that use, or a different use. The highest and best use of a property may change if
the property is valued in isolation instead of as a contributing part of an economicallyinterdependent group of properties. See IVS 104 Bases of Value, Section 140 Premise of Value –Highest and Best Use.

2.7

Basis of ValueThe Valuation Report must clearly state the Basis of Value, its definition, and the source of its
definition. See IVS 104 Bases of Value

2.8

Valuation Approaches
More than one Valuation Approach must be applied in the Valuation of the subject Mineral
Property, if it is reasonably possible and appropriate to apply them, unless constrained by the
Scope of Work agreed to with the Commissioning Entity. The resulting Valuation estimates
must be reconciled. If only one Approach is used, the Valuation Report must provide an
explanation for why more than one is not used. See IVS 105 Valuation Approaches and Methods,
Section 10 Introduction.

2.9

Responsibilities of Valuer
The Valuer is responsible for the Valuation and the overall Valuation Report, including thefollowing:(a)Selecting Valuation Approaches and Methods.

(b)Ensuring that any Expert(s) assisting with t h e review of information and theValuation are appropriately qualified and experienced, that their assistanceis disclosed in the Valuation Report, and that their consents are obtained forany description of their assistance in the form and context in which it appears
in the report.

(c)Adhering to the requirements of this Template or the applicable code or
standard, and to other principles as applicable.

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2.10

(d)

Assessing the Reasonableness of the relevant information, interpretations,discussions and conclusions, forecasts, and parameters used in the Valuation.

(e)Adhering to the legal and regulatory requirements applicable to Valuations andValuation Reports in the relevant jurisdictions.

(f)Providing a statement that the named Valuer is responsible for the Valuationand the Valuation Report.

Valuation Report
The Valuation Report must contain, at a minimum, the following information (See IVS 103
Reporting). Where any of this information is not included, the Valuation Report must provide an
explanation.
(a)Mineral Property identification.

(b)

Intended use and intended users of the Valuation, and any restrictions on theuse or distribution of the Valuation.

(c)

Purpose of the Valuation.

(d)Basis of Value.

(e)

Report Date and Valuation Date (also called Effective Date), preferably stated
together to mitigate confusion.

(f)

Determination of the highest and best use as of the Valuation Date, whereapplicable.

(g)

Scope of Work.

(h)Geological Description of the Mineral Property being valued, and details of thestatus of its exploration, development, or production at the Valuation Date.

(i)

Assumptions, risks, and limitations.

(j)Valuation Approaches and Methods used and the Value estimates derived
from each.

(k)Reconciliation of the Value estimates derived.

(l)Value opinion.

(m)

Disclosure of t h e Value opinion from any prior Valuations for the same
Mineral Property with Valuation Dates within the prior three years, if available
to the Valuer, and explanation of Material differences. Valuations with
Valuation Dates prior to three years may be included at the Valuer’s discretion.

(n)Sources of information, including of data, and a statement as to whether or not
the information has been accepted as reliable without further verification.

(o)Statement of whether or not a site visit to the Mineral Property has been
undertaken, and if so, the names of the Valuer and/or Experts who visited thesite and the date(s) of the site visit.

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3.

(p)

Statement that the Valuation complies with the current edition of the relevant
national Mineral Property Valuation code or standard, or if applicable,
specification of the instructions from which it deviates.

(q)

Identity, qualifications, and experience of Valuer and any Experts, and the areasof the Valuation Report for which each is responsible.

(r)Statement of Independence or non-Independence of the Valuer and any Experts.

(s)

Declaration of Valuer’s Competence, including disclosure of any personal
interest or potential interest in the subject Mineral Property, with signature.

GUIDANCE
This section provides supplemental guidance to aid with the application of Requirements,
specified in Section 2.

3.1

Competence
The Valuation of Mineral Properties may require Competence in a wide range of disciplines.
Depending on the nature of the Mineral Property to be valued, the Basis of Value to be applied,
and the availability of currently relevant technical reports for the subject Mineral Property, an indepth understanding may be needed in such specialised areas as geoscience; mining or
petroleum engineering; metallurgy; water rights; environmental assessment; social aspects;
regional geopolitics; micro and macro mineral economics; finance; taxation and government
levies; property, mineral, and other applicable law; bulk transportation; and marketing.
Therefore, in many cases, Valuers should retain Experts who are Competent in the vetting anddevelopment of certain technical information and development of Inputs used in the Mineral
Property Valuation and the preparation of a Valuation Report. See also IVS Framework 50.
Some jurisdictions may require a minimum number of years of experience in the relevant subject
area. See CRIRISCO Template, which requires a minimum of 5 years of experience in the relevant
subject area. See also IVS Framework 4 and 5. A Valuer is also known as a Valuator or an
Appraiser in some jurisdictions.

3.2

Materiality
The determination of what is Material or relevant to the Valuation depends on both qualitativeand quantitative factors. A parameter may be Material in the qualitative sense because of its very
nature, such as country risk. Valuers should determine that all Material information isconsidered.
A general rule in determining if information is Material is consideration of whether its omission
or misstatement could influence the decisions of the intended users of the Valuation Report.
Professional judgment is required to determine what information is Material. Two tests may be
used in determining whether an item is Material -- a qualitative test (that is, the nature of theitem and whether knowledge of it would influence the decisions of users) and a quantitative test
expressed as a percentage.
If the Valuer finds it is impossible or impractical to obtain sufficiently accurate or reliable data,
this must be stated in the Valuation Report. Depending on the amount and quality of available
data, the Valuer may not be in a position to express an opinion of Value. Alternatively, the

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Valuer may make one or more assumptions or Special Assumptions, which must be disclosed
prominently.

3.3

Transparency
The principle of Transparency requires that information should not be presented in a minimal or
unclear form from which the intended user accepting this information at face value could draw
incorrect implications or conclusions. Any implications that would be revealed by a morethorough or deeper evaluation or explanation of the Material issues should be disclosed.
Transparency during development and reporting of a Valuation aids in promoting Objectivity,
while minimising subjectivity. A Transparent Valuation Report is generally one that is presented
with clear and concise writing, supplemented by helpful and legible tables, graphs, maps, andphotographs. Where it is not possible to be concise, the information should be presented in such amanner that Material information is clear and prominent.
The Valuation conclusion will depend on the interaction of a number of key assumptions that the
Valuer should disclose. These qualities should apply to the data and information, and the analysis
and presentation thereof, used as the basis of a Valuation Report. Factors to which thesequalities should apply when present include the assessment of Mineral (including Petroleum)
Resources and Reserves, issues pertaining to extraction, mining, processing, and marketing, theValuation Approaches and Methods adopted and their application, all of which should be clearly
set out in the Valuation Report.

3.4

Objectivity"The process of valuation requires the valuer to make impartial judgements as to the reliability of
inputs and assumptions. For a valuation to be credible, it is important that those judgements are
made in a way that promotes transparency and minimises the influence of any subjective factors on
the process. Judgement used in a valuation must be applied objectively to avoid biased analyses,
opinions and conclusions. (IVS Framework, Section 40).
"It is a fundamental expectation that, when applying these standards, appropriate controls andprocedures are in place to ensure the necessary degree of objectivity in the valuation process sothat the results are free from bias. The IVSC Code of Ethical Principles for Professional Valuers
provides an example of an appropriate framework for professional conduct" (IVS Framework,
Section 40).

3.5

Independence
While the Template and the IVSs do not specify Independence of the Valuer, Independence may
be specified by national legal or regulatory requirements in various jurisdictions, or by
Commissioning Entities or intended users of Valuations. For the Valuer to be able to develop a
Valuation that users can confidently accept as free from bias, the Valuer must be Independent of
the outcome of the Valuation, and thus able to Objectively exercise their judgement.

3.6

Reasonableness
The test of Reasonableness is to consider what appropriately qualified and experienced Valuers,
acting reasonably, would conclude in the circumstances. The Valuer must form an opinion that isreasonable in the circumstances, that is, what a Valuer believes is rational and plausible in thecircumstances and would be viewed as such if considered by other appropriately qualified andexperienced Valuers with the same information and at the same time.

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3.7

Identification of the Property and Interest Being Valued
One or more maps, photographs, or diagrams can aid the description of the subject Mineral
Property. Documentation of title or rights, and encumbrances, should be included in the Valuation
Report as needed for substantiation. In the case of a fractional interest, physical segment, or
partial holding, descriptions of the holding and control limits, and of properties or rights excluded
from the Valuation, are required for clarity. As an example, a mill dedicated to a remote mineraldeposit may be inside the control limit, while a toll mill in a mining camp would be outside.

3.8

Levels of Valuation Research and Valuation Reporting
Various levels of Valuation research and Valuation Reports may be contemplated as specified in anational code or standards. The level of Valuation research depends on the extent of work
conducted in accordance with the Scope of Work. The level of Valuation reporting depends on
the thoroughness of documentation. The levels of Valuation research and reporting undertaken
and the extent to which it conforms to a national code or standard must be stated in the Valuation
Report in association with the Scope of Work.

3.9

Valuation Process
The three generally accepted Valuation Approaches are:•Market Approach (See IVS 105 Valuation Approaches and Methods, Section
20)•

Income Approach (See IVS 105 Valuation Approaches and Methods, Section
40)•

Cost Approach (See IVS 105 Valuation Approaches and Methods, Section 60)

Further guidance on the Valuation Approaches is provided in the IVSs.
Each Valuation is time and circumstance specific. The most appropriate Valuation Approach or
Method will depend on several factors, including the stage of development, the highest andbest use, the Basis of Value, the availability of Valuation Inputs and data, and on the Value
estimation techniques used by participants within the relevant market for the Mineral Property.
For a particular Mineral Property, Valuation Methods from at least two of the three Valuation
Approaches should be used. There are a variety of Valuation Methods within the Valuation
Approaches, each with different suitability to the Valuation assignment at hand.
The results from the Valuation Approaches and Methods employed should be analysed andreconciled into a concluding opinion of Value. Reasons should be stated for the relevance andreliability of the reconciliation method or methods used. The opinion of Value can be stated as arange of Values and/or as a single Value within a stated range, depending on national code or
standard requirements.
When the Basis of Value to be determined is Market Value, the Valuer should attempt to ensurethat Inputs to all Valuation Methods applied are derived from the relevant marketplace,including the expectations and perceptions of the applicable market participants.
See also IVS 104 Bases of Value, Section 30.

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4.

DEFINITIONS
4.1

Appraisal
See Valuation.

4.2

Basis of Value"Bases of Value (sometimes called standards of value) describe the fundamental premises on
which the reported values will be based." (IVS 104 Bases of Value, Section 10). Basis of Value
commonly refers to Market Value, but can also refer to other Bases of Value such as Fair Value,
Fair Market Value, Investment Value, Special Value, or Synergistic Value. See IVS 104 Bases of Value.

4.3

Commissioning Entity
The organisation, company, or person that commissions a Valuation and Valuation Report.

4.4

Competence or Competent
Applies to a suitably qualified and experienced person who is a member of a Professional
Organisation with an enforceable code of ethics and rules of conduct that include the ability todiscipline and expel a member. In the context of Mineral Property Valuation, Competence for a
Valuer also requires “appropriate technical skills, experience and knowledge of the subject of thevaluation, the market(s) in which [the Mineral Property] trades and the purpose of the valuation”(IVS Framework, Section 50).

4.5

Cost Approach“Provides an indication of value using the economic principle that a buyer will pay no more for an
asset than the cost to obtain an asset of equal utility, whether by purchase or by construction”(IVS 105 Valuation Approaches And Methods, Section 60), and includes methods based on
expenditures.

4.6

Effective Date
See Valuation Date.

4.7

Evaluation
A broad physical, technical, legal, economic, and/or other assessment of a Mineral Property thatis generally sought for an investment decision. Evaluations include feasibility studies, prefeasibility
studies, preliminary economic assessments, technical assessments, and scoping studies. For clarity,
Evaluation is distinct from Valuation.

4.8

ExpertA person who may be retained by the Valuer to review technical information, prepare sections of
Valuation Reports, or provide Inputs concerning specialised matters about which the Valuer is
not personally Competent. The Expert must have sufficient training and experience relevant tothe subject matter for which he or she is being retained to review or provide Inputs.

4.9

Fair Market Value
See the definition of Market Value below. See also IVS 104 Bases of Value, Section 110.

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4.10

Fair ValueFor Valuations that are not applicable to financial reporting, Fair Value (legal/statutory) is used bymany national, state and local agencies as a basis of value in a legal context. The definitions canvary significantly and may be the result of legislative action or those established by courts in priorcases. (IVS 104 Bases of Value, Section 120.1).
For the purpose of financial reporting, Fair Value is defined within the International Financial
Reporting Standards in IFRS 13 as “the price that would be received to sell an asset or paid totransfer a liability in an orderly transaction between market participants at the measurement date”(IVS 104 Bases of Value, Section 90).

4.11

Income Approach“The Income Approach provides an indication of value by converting future cash flows to a single
current capital value” (IVS 105 Valuation Approaches and Methods, Section 40).

4.12

Independence or Independent
The Valuer and/or Expert must have no pecuniary or beneficial interest, either present orcontingent, in the Commissioning Entity, the Mineral Property being valued, other parties involvedin a transaction on the Mineral Property, or the outcome of the Valuation, other than professional
fees and disbursements related to the Valuation assignment.

4.13

InputsAll information used in the Valuation.

4.14

Investment Value“Investment Value is the value of an asset to a particular owner or prospective owner for individual
investment or operational objectives.” (IVS 104 Bases of Value, Section 60).

4.15

Market Approach“The market approach provides an indication of value by comparing the asset with identical orcomparable (that is similar) assets for which price information is available.” (IVS 105 Valuation
Approaches and Methods, Section 20). The Market Approach is also known as the “Sales
Comparison Approach.”

4.16

Market Value“Market Value is the estimated amount for which an asset or liability should exchange on thevaluation date between a willing buyer and a willing seller in an arm’s length transaction, after
proper marketing and where the parties had each acted knowledgeably, prudently and without
compulsion." (IVS 104 Bases of Value, Section 30).

4.17

Materiality or Material
All relevant information that investors and their professional advisers would reasonably require
and reasonably expect to find in a Valuation Report for the purpose of making a reasoned andbalanced judgement regarding the Valuation.

4.18

Mineral Property
Any contractual or permanent right to explore for, mine or otherwise extract minerals (including

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petroleum) from the earth, and any interest in such a right, and any land ownership that includes
or inherently provides that right. For the purpose of the Template, Mineral Property generallymeans Real Property interests, including rights to explore for and extract Mineral Resources andReserves, mining claims and other forms of mineral tenements, mineral rights, petroleum rights,
royalty interests, and intellectual property such as geological data forming part of or
accompanying the rights and interests referred to above.

4.19

Mineral Resources and Mineral Reserves
Terminology for reporting exploration results, Mineral Resources, and Mineral Reserves ispublished in the International Reporting Template of the Committee for Mineral Reserves
International Reporting Standards (CRIRSCO), edition of November 2019, as amended from time
to time, and may be subject to rules and guidance contained in National Reporting Codes andStandards. While petroleum is a mineral, special terminology applies as per the definition ofPetroleum Resources and Petroleum Reserves.

4.20

Minerals Industry
Entities and individuals involved in exploration for minerals and the extraction, processing, andmarketing of minerals (including petroleum). This term applies to the point of first possible saleof any particular commodity and excludes properties and activities that are downstream from asmelter, refinery or processing plant.

4.21

Objectivity
Acting impartially and without bias in conducting a Valuation and preparing a Valuation Report.

4.22

Petroleum Resources and Petroleum Reserves
While petroleum is broadly included with minerals, definitions and classification of Petroleum
Resources and Petroleum Reserves are published in the Petroleum Resources Management System(PRMS), 2007 edition, as amended from time to time, and with Guidelines for Application publishedin 2011.

4.23

Professional Organisation
A self-regulating organisation, such as one of engineers, geoscientists, or minerals Valuers, that (a)is accepted and recognised as reputable by the professional community, or has been given
authority or recognition by statute; (b) admits members on the basis of their academic
qualifications and professional experience; (c) requires compliance with professional standards ofexpertise and behaviour according to a code of ethics established by the association; (d) requires
compliance with specified continuing education requirements; and (e) has enforceable disciplinary
powers, including that of suspension or expulsion of a member.

4.24

Public Report
Any report prepared for the purpose of informing investors or potential investors and theiradvisers, or to satisfy regulatory requirements. Public Reports include, but are not limited to,annual and quarterly company reports, press releases, information memoranda, technical papers,
website postings, and public presentations.

4.25

Real Property Interest"A real property interest is a right of ownership, control, use or occupation of land and buildings."(IVS 400 Real Property Interests, Section 20).

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4.26

Reasonableness
Means that other qualified and experienced Valuers with access to the same information for thesame Valuation Date and Basis of Value would consider the Valuer's estimate of Value to be withina reasonable range.

4.27

Report Date
The date on which the Valuation Report is signed and dated and may not be the same as the
Valuation Date.

4.28

Special Assumption“Where assumed facts differ from those existing at the date of valuation, it is referred to as a’special assumption.’”…or it ”reflects a view that would not be taken by participants generally on
the valuation date.” (IVS 104 Bases of Value, Section 200). The term "hypothetical condition" isused in some jurisdictions.

4.29

Special Purchaser
A particular buyer for whom a particular asset has Special Value because of advantages arisingfrom its ownership that would not be available to other buyers in the market.

4.30

Special Value
An amount that reflects particular attributes of an asset that are only of value to a Special
Purchaser.

4.31

Synergistic Value“Synergistic Value is the result of a combination of two or more assets or interests where the
combined value is more than the sum of the separate values.” (IVS 104 Bases of Value, Section 70).

4.32

Transparency
A clear and unambiguous presentation of the Valuation and the Valuation process in the Valuation
Report, which includes all Material information on which the Valuation is based, such that thereader can understand the Valuation Report and how the valuation was derived and not be misled.

4.33

Valuation
The estimation of the Value of a Mineral Property in money or monetary equivalent. The word
‘valuation’ can be used to refer to the estimated value (the Valuation conclusion) or to refer to the
preparation of the estimated Value (the act of valuing).

4.34

Valuation Approach
A grouping of Valuation Methods for which there is a common underlying rationale or basis.

4.35

Valuation Date
The date on which the opinion of value (or Valuation) applies

4.36

Valuation Method
A particular or systematic procedure used to estimate Value.

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4.37

Valuation Report
A document that reports the results of the Valuation of a Mineral Property or Properties thatadheres to the relevant national code or standards and relevant legal and regulatory
requirements.

4.38

Value
A generic term that may refer to Market Value, Investment Value, or another ‘value’ definition,
including those specified in national codes or standards.

4.39

ValuerA person who (a) is a professional with demonstrated experience and Competence in the
Valuation of Mineral Properties, (b) has experience relevant to the subject Mineral Property or
has relied on an Expert with experience relevant to the subject Mineral Property, and (c) isregulated by or is a member in good standing of a Professional Organisation. A Valuer is also known
as a valuator or appraiser in some jurisdictions.

IMVAL Template Fourth Edition