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THE SOUTH AFRICAN CODE FOR THE REPORTING
OF MINERAL ASSET VALUATION(THE SAMVAL CODE)
2016 EDITION
as amended 1 20 December 2016
Prepared by:
The South African Mineral Asset Valuation Committee (SAMVAL) Working Group under the
auspices of the Southern African Institute of Mining and Metallurgy and the GeologicalSociety of South Africa, through the SAMCODES Standards Committee (SSC)
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Table of contents
1
Introduction ................................................................................................................................. 3
1.1 Foreword ..................................................................................................................................... 3
1.2 History .......................................................................................................................................... 3
1.3 Application and Purpose ........................................................................................................... 4
1.4 Scope and Limitations ............................................................................................................... 5
1.5 Format of the Code .................................................................................................................... 5
1.6 Limitations to the Use of Valuations ........................................................................................ 6
1.7 Out-of-scope Issues................................................................................................................... 6
1.8 The Scope in Terms of Type of Commodity .......................................................................... 6
1.9 Purposes of Valuations ............................................................................................................. 7
1.11 Alignment with Other Jurisdictions .......................................................................................... 7
1.12 Asset Types and Ownership Issues ........................................................................................ 7
1.13 Relationship with SAMREC and Other Codes ...................................................................... 7
2
Fundamental Principles............................................................................................................. 8
2.1 Fundamental Principles............................................................................................................. 8
2.1.1 Materiality: ................................................................................................................................... 8
2.1.2 Transparency: ............................................................................................................................. 8
2.1.3 Competency: ............................................................................................................................... 8
2.1.4 Reasonableness: ....................................................................................................................... 93Standards .................................................................................................................................... 9
3.1 Basis of Valuation ...................................................................................................................... 9
3.2 Principles ..................................................................................................................................... 9
3.3 Valuation Approaches ............................................................................................................... 9
3.3.1 Income Approach ....................................................................................................................... 91

Note addenda (highlighted in red) on this page, and pages 12 and 18

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3.3.2 Market Approach ........................................................................................................................ 9
3.3.3 Cost Approach .......................................................................................................................... 10
3.4 Impartiality ................................................................................................................................. 10
3.5 Responsibility............................................................................................................................ 10
3.6 Dealing with Rights and Contracts ........................................................................................ 11
3.7 Site Visit ..................................................................................................................................... 11
3.8 Complaints and Discipline ...................................................................................................... 11
3.9 Commissioning Entity .............................................................................................................. 11
3.10 Valuation Reports .................................................................................................................... 12
3.11 Valuation Date .......................................................................................................................... 12
4
Guidance ................................................................................................................................... 13
4.1 Independence ........................................................................................................................... 13
4.2 The Valuation Process ............................................................................................................ 13
4.3 The Valuation Report............................................................................................................... 13
4.4 Valuation Methods ................................................................................................................... 13
4.5 Use of Mineral Resources and Mineral Reserves .............................................................. 14
4.6 Valuation of Inferred Resources, Exploration Properties, and Exploration
Targets....................................................................................................................................... 15
4.7 Scoping Study .......................................................................................................................... 16
4.8 Highest and Best Use (HABU) ............................................................................................... 17
4.9 Dealing with risk in valuations ................................................................................................ 174.10 The Behaviour of the CV......................................................................................................... 174.10.1 Principles .............................................................................................................................. 174.10.2 Values ................................................................................................................................... 17
5
Appendices ............................................................................................................................... 18
APPENDIX A....................................................................................................................................... 18
TABLE 1: MINERAL ASSET VALUATION: REPORTING AND ASSESSMENTCRITERIA.................................................................................................................................. 19
APPENDIX B....................................................................................................................................... 22
SPECIFIC COMPETENCIES: THE COMPETENT MINERAL ASSET VALUATOR(CV) ............................................................................................................................................ 22
APPENDIX C ...................................................................................................................................... 23
GLOSSARY OF TERMS ................................................................................................................... 23
APPENDIX D ...................................................................................................................................... 33
LIST OF ABBREVIATIONS USED IN THIS CODE ...................................................................... 33

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1

Introduction

1.1

Foreword

The SOUTH AFRICAN CODE FOR THE REPORTING OF MINERAL ASSET VALUATION(the SAMVAL Code or ‘the Code’) sets out minimum standards and guidelines for Reportingof Mineral Asset Valuation in South Africa.
An important characteristic of the extractive industries that sets them aside from otherindustries or economic sectors is the depletion or wasting of natural resources that cannot be
replaced in their original state once extracted. The agent of production is extraction of mineralbearing and associated materials from the Earth. The ultimate quantity and quality of materialof economic interest that might be extracted from a property is often not known at the date ofvaluation. As a result, the valuation process relies on multiple technical and economic inputs,
and therefore the Competent Mineral Asset Valuator (CV) needs to have an understanding ofthese, in order to conduct the valuation. This sets apart the Mineral Asset Valuation profession
as being a specialist area of valuation.
The SAMVAL Code forms a part of the SAMCODE document, and as such relies upon therequirements of the SAMREC Code (The South African Code for the Reporting of Exploration
Results, Mineral Resources and Mineral Reserves) for the reporting of Mineral Resources andMineral Reserves, where necessary, and it draws on, and cross-references to, definitions andprinciples embodied within the SAMREC Code as well as the South African Code for theReporting of Oil and Gas Resources (the SAMOG Code) for the estimation and valuation of
petroleum assets. This is in the area of Public Reporting in South Africa, but applies equally
to reports that may be deemed to be ’non-public’. (In certain instances, it may also rely on
Competent Person’s Reports that are based on other Mineral Resource and Mineral Reserve
Codes).
1.2

History

The process for establishing the SAMVAL Code was initiated through an open meeting at a
colloquium convened by the Southern African Institute of Mining and Minerals (SAIMM) in
March 2002. Various papers and articles were published on the matter and the colloquium
called for comment and mandates. Contact was also established with the Australasian Instituteof Mining and Metallurgy (AusIMM), the Canadian Institute of Mining, Metallurgy andPetroleum (CIM), the International Accounting Standards Board (IASB), and the International
Valuation Standards Council (IVSC).
In its original form, the SAMVAL Code was drawn up by the SAMVAL Working Group of the
SAMREC/SAMVAL Committee (SSC) under the joint auspices of the Southern African
Institute of Mining and Metallurgy (SAIMM) and the Geological Society of South Africa (GSSA).
The SSC consisted of representatives of the SAIMM, the GSSA, the South African Council for
Natural Scientific Professions (SACNASP), the Geostatistical Association of Southern Africa(GASA), the South African Geomatics Council (SAGC) (now the South African Geomatics
Council (SAGC), the Engineering Council of South Africa (ECSA), the South African Instituteof Chartered Accountants (SAICA), the Association of Law Societies of South Africa (ALSSA),
the General Council of the Bar of South Africa (the GCB), the Department of Minerals andPage 3 of 34

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Energy (DME) (now the Department of Mineral Resources (DMR), the Johannesburg Stock
Exchange Limited (JSE), the Council for Geoscience (CGS), the Banking Association of South
Africa (BASA), the Minerals Bureau, the Chamber of Mines of South Africa (COMSA), and the
University of the Witwatersrand (Wits). This resulted in publication in April 2008 of the
SAMVAL Code, with further amendments in July 2009.
After various discussions it became apparent that a review process was required, and this was
initiated in September 2011 at an open meeting at which participants were invited to express
their opinions on matters that were unclear, or that required inclusion/exclusion or
modification, in the 2008 edition.
All of these points were captured, and retained for the revision process. The timing has provento be opportune, because at the same time, a review of the Code for the Technical Assessment
and Valuation of Mineral Assets and Securities for Independent Expert Reports (the VALMIN
CODE) was initiated in Australia, and an international harmonization group for Mineral Asset
Valuation principles, and definitions was formed, known as the International Mineral Asset
Valuation Group (IMVAL), thus allowing these processes to run in parallel, and withinternational participation and discussion. A fundamental premise of this revision is to align tointernational Valuation Standards, as far as is possible and practical, as is therecommendation and intent of IMVAL, particularly with respect to definitions and principles.
The review was undertaken under the auspices of the SSC, by the SAMVAL Working Groupand its various sub-committees.
1.3

Application and Purpose

The Code is applicable to the preparation and reporting of valuations conducted on all styles
of solid mineralization. Valuations conducted on oil and gas (petroleum) assets are to be
conducted under the auspices of the SAMOG Code.
The guiding philosophy and intent of the SAMVAL Code is that Mineral Asset Valuations
should be performed by Competent Mineral Asset Valuators (CVs), and all relevant
information fully disclosed. The SAMVAL Code is based on best practice and Generally
Accepted Valuation Standards in the minerals industries and allows for professional
judgement.
Valuation is the estimation of the Value of a Mineral Asset in money or monetary equivalent.
The word ”valuation” can be used to refer to the estimated value (the Valuation conclusion) or
to the preparation of the estimated Value (the act of valuing)’ (IVS Framework, para 9, p.13).
The word ‘valuation’ is synonymous with the word ‘appraisal’ as used in certain countries. In
contrast, the word ‘appraisal’ is used in Australia for the broader activity of evaluation,
including the preparation of Resource and Reserve estimates (IMVAL, 2015).
An evaluation of a Mineral Asset, as defined in this Code, is a broad physical, legal, economic,
and other assessment, generally sought for an investment decision. Evaluations include
Feasibility Studies, Prefeasibility Studies, and Scoping Studies. For clarity, evaluation is
distinct from valuation.
The underlying reason for having a Code for the valuation of Mineral Assets is to provide
consistency and minimum standards, as well as guidance, for Mineral Asset Valuation
professionals. This limits unscrupulous valuations, which could result in severelycompromising the interests of investors and potential investors.

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1.4

Scope and Limitations

The Code is intended to form the basis of best practice in Mineral Asset Valuation andReporting while allowing for flexibility through effective professional judgement and specificlocal provisions and/or conditions. The scope in terms of asset type and ownership issues islimited principally to the valuation of mineral assets, including valuation of the Mineral
Resources and Mineral Reserves at any point on the value curve, including real and personal
property associated with the asset being valued. The valuation of oil and gas assets is dealt
with in the SAMOG Code.
The Code sets out a required minimum standard for the Reporting of Mineral Asset Valuations.
This applies to both Public Reports, required for listings, financing, etc., and to other reports
for various purposes as referred to below.
Where referred to in this Code, Public Reports are all those reports prepared for the purposeof informing investors or potential investors and their advisers and include, but are not limited
to, companies’ annual reports, quarterly reports, and other reports included in JSE circulars,or as required by the Companies Act (Act 71 of 2008). The Code also applies to the following
reports if they have been prepared for the purposes of informing investors, potential investors
and their advisors: environmental statements; information memoranda; expert reports;
technical papers; website postings; and public presentations.
For companies issuing annual reports or other summary reports, the inclusion of all material
information relating to Mineral Asset Valuation shall be included (Refer Table 1 in Appendix
A). Where a summary is presented, it should be clearly stated that it is a summary, with areference attached giving the location of the Code-compliant Public Reports or Public
Reporting on which the summary is based. Companies and other entities should provide
information, which is as comprehensive as possible, in their Public Reports.
It is recognized that companies may be required to issue reports for more than one regulatory
jurisdiction, with compliance standards other than those contained in the Code. Such reports
should include a statement alerting the reader to this.
Reference in the Code to ‘documentation’ pertains to internal company documents prepared
as a basis for, or in support of, a Valuation Report. It is recognized that situations may arise
where such supporting documentation, prepared by CVs for internal company or similar nonpublic purposes, may not specifically be compliant with the Code. In such situations the
documentation should include a prominent statement to this effect.
For reports that are not intended for the public domain, such as analysts’ reports and internal
company reports, the use of the Code is still recommended.
1.5

Format of the Code

The Code is divided into Introduction, Principles and Definitions, Standards and Guidance
sections, as well as the minimum disclosure requirements for Mineral Asset Valuation
Reporting and Assessment criteria (Table 1 in Appendix A), the competencies of a CV
(Appendix B), a glossary of terms (Appendix C), and a list of abbreviations (Appendix D).
This format has been derived from extensive research of other Mineral Asset Valuation Codes.
As far as possible, principles have been aligned to other international Valuation Codes, andPage 5 of 34

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definitions have been chosen/developed based on further extensive research of globallycommon definitions.
Standards represent the minimum mandatory standards that CVs ’shall’ adopt and be
governed by, whereas Guidance provides best-practice guidelines on various aspects ofMineral Asset Valuation.
The conventions used in this Code follows those of the United Nations Framework
Classification (UNCF). As such:‘shall’ is used where a provision is mandatory, ‘should’ is used where a provision is preferred,and ‘may’ is used where alternatives are equally acceptable.
1.6

Limitations to the Use of Valuations

Limitations to the use of any valuation shall be defined by the Commissioning Entity inconsultation with the CV. The purpose(s) of the valuation shall be clearly stated. It is the
responsibility of the reader to understand that the valuation was intended for a specificpurpose, at a specific time, and that it may not be suitable for any other purpose and/or use
at a later date.
The only way in which the use of the Mineral Asset Valuation can be limited is by an
unambiguous statement of purpose(s) in the document itself.
A further limitation of the valuation is that it is only valid as at the Effective Date.
1.7

Out-of-scope Issues

The valuation of companies is out of the scope of this document as this aspect deals with
reputational issues of executives and management, which is rather the remit of market
analysts. The same mineral asset could therefore have different valuations depending on thecredentials of the owners. It is important to note that CVs requires a wider range ofcompetencies to assess the valuation of companies and it may be necessary to protect themfrom litigation issues that may arise from undue complexity.
In these cases, where the valuation of the Mineral Resources and Mineral Reserves forms an
integral part of the valuation of the company, the CV may be part of a competent team thatvalues all the assets of the company. Where these are assets such as real property (otherthan the Mineral or Prospecting Rights), personal property, or business combinations, reliance
may be placed on technical experts competent in these areas, and competent to value the’going concern’.
1.8

The Scope in Terms of Type of Commodity

The SAMVAL Code includes the valuation of all types of solid mineral commodities and stylesof mineralization.
It is the responsibility of the CVs to ensure that they have the necessary skills in accordancewith the specific scope as it pertains to a type of mineral commodity, and the scope of theassignment, or to rely on suitably qualified Technical Experts or Competent Persons to provide
technical inputs, or to provide expertise in valuation which the CV may not have (for example,
where valuations at a company level are required, and which may include valuation of personal
property, businesses, and financial interests).

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1.9

Purposes of Valuations

The use and purpose of the Valuation Report prepared in accordance with the SAMVAL Codeshould be clearly stated by the Commissioning Entity. Once the Commissioning Entity
requests that the report be compiled in accordance with the SAMVAL Code, it then becomesbinding on the CV.
The SAMVAL Code applies to the valuation of mineral assets for any report intended for public
release and issued for a purpose regulated by the Companies Act, other provisions of South
African law, or by the listing requirements of the JSE and other recognized stock exchanges.
Other purposes for which the SAMVAL Code, in whole or in part, could be followed are
valuations involved with, including but not limited to:
•
•
•
•
•
•
•
•
•

The justification for raising debt or equity finance;
Facilitating negotiations between parties;
The assessment of Government charges and taxes;
Estate settlements;
Internal corporate reports;
Reports and expert witness statements provided for the purposes of litigation;
Acquisitions and disposals;
Impairment calculations; andAccounting and financial reporting.

These could be deemed non-public, but at some stage could be in the public domain. It isadvisable therefore, that all reports be considered ’public’ and therefore should comply withthis Code as a matter of best practice and good governance.
1.10

Alignment with Other Jurisdictions

The Code has been aligned, as far as possible, with other Mineral Asset Valuation Codes,
such that where it is used in other jurisdictions (say, within joint venture valuations) it should
be reconcilable with all other codes. Cognisance has been taken of international developments
in terms of the IMVAL Code.
1.11

Asset Types and Ownership Issues

Mineral rights, including prospecting and mining rights, are recognized as a ’limited real right’
for the purpose of valuation in South Africa. Elsewhere, they are commonly known as ’realrights’.
The status of mineral rights, contracts, and other ownership issues are examples of Modifying
Factors that may have an influence on overall valuation and remain in scope. It is the
responsibility of the Commissioning Entity to disclose these interests, and of the CV to conduct
the valuation with these ownership issues in mind. Where the mineral right is owned, the CV
shall take into account any restrictions or conditions attached to the right which could impact
on value, as well as take account of servitudes, leases, and contracts over the land.
1.12

Relationship with SAMREC and Other Codes

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SAMVAL-compliant valuations shall be based on Resources and Reserves prepared inaccordance with the SAMREC or any other CRIRSCO-affiliated Mineral Resource and Mineral
Reserve Reporting Code as required by the Commissioning Entity and the respective area ofjurisdiction. The Valuation Report shall therefore refer to the Code(s) upon which the valuationis reliant, as well as the reason for using this Code.

2

Fundamental Principles

2.1

Fundamental Principles

The Code is a principles-based code, whereby certain fundamental principles should be
followed, upon which CVs base their professional judgement and are able to justify theirvaluation to their peers.
The Code differentiates between fundamental principles, which shall be adhered to by the CV,
and guiding principles (described later), which are more ethics-based.
The following fundamental principles shall be considered in the application of the Code:2.1.1 Materiality:
A Public Report contains all the relevant information that investors, their professional
advisors and/or Commissioning Entity would reasonably require, and expect to find,for the purpose of making a reasoned and balanced judgement regarding the Mineral
Asset Valuation.
2.1.2 Transparency:
The reader of a Public Report shall be provided with sufficient and relevant information,
the presentation of which is clear and unambiguous, to understand the report and not
be misled. The process or methodology should be aligned with the purpose for which
the valuation is intended and should be readily auditable in all material respects.
2.1.3 Competency:
A CV is a person who possesses the necessary qualifications, ability, and sufficient
relevant experience in valuing minerals assets. A person being called upon to sign asa CV shall be clearly satisfied in their own mind that they are able to pass the scrutinyof their peers and demonstrate competence in the valuation undertaken.
The CV shall be registered with ECSA, SACNASP, or SAGC, or be a Member or Fellowof the SAIMM, GSSA, or SAICA or a Recognized Professional Organization (RPO), or
other organizations recognised for this purpose by the SSC on behalf of the JSE, besubject to an enforceable Code of Conduct (Ethics) and a Disciplinary Code and beable to demonstrate the competencies listed in Appendix B.
A complete list of RPOs which is published by the SSC on the SAMCODE website, isupdated from time to time. 2

2

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2.1.4 Reasonableness:
Reasonableness means that other appropriately qualified and experienced CVs withaccess to the same information, as of the same Effective Date, would arrive at a
broadly comparable range of value using the same Basis of Value and the same Scopeof Work.
A ’reasonableness test’ serves to identify a valuation which may be out of step withindustry standards or norms. If the Basis of Value is Market Value, assumptions
applied and any property development method or model relied upon, should bereasonable within the context of the purpose of the valuation. The development
method or model should be within the expected capability and consideration of theassumed likely buyer of the subject Mineral Asset.

3Standards

3.1

Basis of Valuation

The basis of valuation is the monetary value of the Mineral Asset being valued. This may varydepending on the value type that is being assessed.
In the extractive industries, value is usually derived from an assessment of the Intrinsic Value,
which is based on the unique technical characteristics of the asset being valued. If some othertype of value is utilized or required, a clear definition shall be provided by the CV andhighlighted in the Valuation Report. This is especially the case where a Market Value or Fair
Value is required. In order for the Intrinsic Value to be converted to a Market Value,
appropriate and justifiable market factors are applied.
3.2

Principles

The fundamental principles of materiality, transparency, competence, and reasonableness, as
described above, shall be applied by the CV when conducting a valuation.
3.3

Valuation Approaches

The CV shall apply at least two valuation approaches to assess the value of a Mineral Asset.
Where it is not possible to use more than one approach, the CV shall clearly justify why this is
not possible. The three approaches are:3.3.1 Income Approach
The Income Approach relies on the ‘value-in-use’ principle and requires determinationof the present value of future cash flows over the useful life of the Mineral Asset.
3.3.2 Market Approach
The Market Approach relies on the ‘willing buyer, willing seller’ principle and requiresthat the monetary value obtainable from the sale of the Mineral Asset is determined as
if in an arm’s-length transaction.

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The application of certain logic in Mineral Asset Valuation, such as ‘gross in-situ value’simply determined from the product of the estimate of mineral content and commodity
price(s), is considered unacceptable and inappropriate.
3.3.3 Cost Approach
The Cost Approach relies on historic and/or future amounts spent on the Mineral Asset,
and is a valuation approach based on the economic principle that a buyer will pay nomore for an asset than the cost to obtain an asset of equal utility, whether by purchaseor by construction (as defined in the IVSC Glossary).
3.4

Impartiality

The CV shall be satisfied that their work has not been unduly influenced by the organization,company, or person commissioning a report or any report that may be deemed a Public
Report; that all assumptions, premises, and modifying factors are documented; and that
adequate disclosure is made of all material aspects that the informed reader may require to
make a reasonable and balanced judgement thereof.
3.5

Responsibility

The CV is responsible for adhering to the principles of materiality, transparency,
reasonableness, and competency in the valuation of the mineral asset.
The CV is responsible for assessing the technical data and information, technicalinterpretations, technical conclusions, forecasts, and parameters used in the Mineral Asset
Valuation, valuation approach, and valuation methods, and applying judgement to therelevance, reliability, and quality of these inputs.
The CV has the responsibility to decide which valuation approaches and methods to use. The
choice of the specific approaches and methods used, or excluded, shall be explained andjustified by the CV. The applications and limitations of each method shall be explained.
Mineral Asset Valuation may require a team effort. Where there is a clear division of
responsibilities within a team, each Competent Person or Technical Expert shall accept
responsibility for his or her own contribution.
The CV shall clearly state under what circumstances other people’s work has been relied on,
and identify such other persons. The author of the Valuation Report shall be satisfied that hisor her work has not been unduly influenced by the organization, company, or person
commissioning a report or any report that may be deemed a Public Report, that all relevant
assumptions, premises and constraints are documented, and that adequate disclosure ismade of all material aspects that the informed reader may require to make a reasonable andbalanced judgement thereof.
The CV also accepts overall responsibility for the Mineral Asset Valuation that has been
prepared in whole or in part by the other contributors, is satisfied that permission has been
gained to utilize this work and that the work of the other contributors is acceptable, and that
constituent parts of the report have been signed off by such contributors. Based on theglossary of terms, Technical Experts equates to Competent Persons (CPs) with a specific or
specialized practice area which differs from that of the CV. The competency profiles,

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occupational task, and typical functions/roles/responsibilities of CPs and CVs are therefore
different, although complementary with respect to the valuation of Mineral Assets.
In the interests of convergence, the CV should be aware of the requirements of Integrated
Reporting, where value is required to be reported, and of Generally Accepted Valuation
Standards as described by the IVSC. In this regard, the CV may be called upon to conduct a
valuation which provides input to a transaction, a re-valuation or impairment, or which may
need to rely upon accounting information to conduct a valuation on exploration assets, or going
concerns.
Should the valuation be of a ‘going concern’ company, there may be a number of accounting
values that shall be used in the valuation, such as goodwill, intangibles, etc. For these typesof assignment, the CV will often be part of a larger team, and therefore should acquainthimself/herself with the relevant IFRSs and IASB definitions.
There are circumstances, such as where certain Cost or Market approaches and methods areused, where the valuation is not directly reliant on a Competent Person’s report. However,where Mineral Asset Valuations depend on Exploration Results, Mineral Resources, andMineral Reserves, these should be compliant with the SAMREC Code, and signed off by aCompetent Person in in accordance with the requirements of the SAMREC Code. In certain
cases, the valuation may rely on other CRIRSCO-affiliated reporting codes, as defined by thejurisdiction or Commissioning Entity.
3.6

Dealing with Rights and Contracts

The CV shall ascertain the ownership status the Mineral Asset. In particular, the property isheld as a right or freehold, and whether restrictions on rights and agreements influence thevaluation. This includes issues such as security of tenure, access, servitudes, royalty
payments, and joint ventures, etc. Assessment should also be made of the land value, if
relevant to the valuation, and whether this attaches to the asset, or requires rentals to be paid.
3.7

Site Visit

A site visit to the mineral property being valued shall be undertaken by the CV. If a site visit
is not undertaken, the reasons should be given, which may include non-materiality.
3.8

Complaints and Discipline

Complaints made in respect of the Valuation Report of a CV will be subject to a Code of
Conduct (Ethics) and a Disciplinary Code of the respective relevant Statutory Body,
Professional Body, or RPO.
Complaints may be lodged with the SSC, which will investigate the complaint and if necessaryrefer the matter for peer investigation, discipline and/or recourse to the relevant Statutory
Body, Professional Body, or RPO with which the CV is registered.
3.9

Commissioning Entity

A Commissioning Entity shall reasonably establish that the CV is sufficiently knowledgeable,
skilled and experienced and Independent to perform the valuation of the subject Mineral Asset.

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The Commissioning Entity and the CV shall agree, in an engagement letter or written contract,on the terms of reference of the valuation assignment, which terms shall be summarized anddisclosed in the Valuation Report. However, this shall not influence or bias the CV to conduct
the valuation in any other way than the CV sees fit. Instead, it should set out the purpose of
the assignment, its objectives and the access and disclosure requirements, and any relevant
assumptions, premises, or constraints that may apply to the assignment.
The Commissioning Entity shall confirm in writing to the CV that complete, accurate, and true
disclosure is made to the CV of all material data and information relevant to the valuation andthat the CV has reasonable access to the Commissioning Entity’s records and personnel inorder to enable a proper valuation to be made.
The Commissioning Entity shall inform the CV which, if any, of the data and information
supplied is confidential and the extent to which it should or should not be disclosed to the
public.
The Commissioning Entity shall clearly state the purpose and use of the valuation, anddisclose all material information and access that the CV needs to conduct his/her assignment
diligently. It is the responsibility of the Commissioning Entity not to unduly influence theoutcome of the valuation.
3.10

Valuation Reports

A Public Report concerning a company’s Mineral Asset Valuation is the responsibility of thecompany acting through its Board of Directors. Any such report shall be based on and fairly
reflect the Mineral Asset Valuation report(s) and supporting documentation prepared by a CV.
A Public Report shall disclose the name of the CV and his or her qualifications, professional
affiliations and relevant experience, and his/her registration with the appropriate Statutory
Body, Professional Body, or RPO. Table 1 in Appendix A is a high-level checklist of reporting
and assessment criteria to be used as a reference by those preparing reports on Mineral Asset
Valuations. The checklist is to be considered in terms of the “if not, why not” principle and, as
always, relevance and materiality are the overriding principles that determine what information
should be publicly reported.
Where any specific valuation documentation is referred to in a Public Report, the written
approval of the CV shall be obtained as to the form, content, and context in which that
documentation is to be included in the Public Report.
3.11

Valuation Date

The Valuation Date of the valuation shall be given, because assumptions, premises, andforecasts used in the valuation are only valid at a specific point in time.

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4

Guidance

4.1

Independence

In certain circumstances, the Commissioning Entity may require that the CV discloses anddemonstrates independence. Independence in such circumstances means that, other thanprofessional fees and disbursements received in connection with the Mineral Asset Valuation
concerned, the CV has no pecuniary or beneficial (present or contingent) interest in any of theMineral Assets being valued, nor has any association with the Commissioning Entity or any
holder of any rights in Mineral Assets that are the subject of the valuation that is likely to create
an apprehension of bias. This will also include the disclosure that the CV will not receive any
benefit accruing after the valuation assignment and report has resulted in a transaction.
When required, the CV shall disclose his or her Independence and his or her relationship with
the Commissioning Entity in writing.
4.2

The Valuation Process

The process or methodology adopted by the CV should be aligned with the purpose for which
the valuation is intended. In order to be transparent, it shall cater for the auditability of all
aspects that can materially influence the result or outcome in the context of such intended
purpose. The process and method used should seek to generate an unbiased representationor use of the information at hand.
4.3

The Valuation Report

The CV should, as far as reasonably possible, ensure that all readers of the final document
would be able to satisfy themselves of the materiality, factual correctness, and completenessof the data and information used or relied upon. The final Valuation Report should reveal areasonable balance between qualitative reasoning and quantitative data for the assessment,
and it should make clear reference to the intended purpose for such a judgement to bepossible.
4.4

Valuation Methods

Valuation methods are essentially a subset of the various valuation approaches. The choiceof the valuation method(s) applied is a matter for the judgement of the CV, and the decision
to use any particular method (and approach) should be justifiable to the CV’s peers.
There are many methods within each approach and for detailed information on these thereader is referred to IVS and other texts and papers on the subject. Whichever method is used,
the CV should justify the use of such method, and disclose all assumptions, premises,
modifying factors, constraints (restrictions), discounts, weightings, adjustments etc. that may
have been applied.
The results from the valuation approaches and methods employed should be weighted andreconciled into a concluding opinion of value in accordance with Figure 1. The reasons forgiving a higher weighting to one method or approach over another should also be stated andjustified.

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Certain valuation methodologies are more widely used and may be more generally acceptable
as industry practice than others, although this could change over time. This is illustrated in
Figure 1, which shows how the various approaches are generally applied to different stagesof exploration and mining properties. This, however, is for guidance only, and is notprescriptive. Ultimately, the CV should stipulate the quality and level of confidence in thevarious inputs, in deciding which approach and method to apply.

Valuation
approach

IncomeMarketCost

Early stage
exploration

Advanced
stage
exploration

Development
properties

Production
properties

Dormant
properties

Defunct
properties

Economically
viableEconomicallynot viableNot
generallyusedLess widelyused

Widely used

Widely used

Widely used

Not generally
used

Widely used

WidelyusedLess widelyusedQuite widelyused

Widely used

Widelyused

Widelyused

Not generally
usedQuite widelyusedNot
generallyused

Not generallyusedLess widely
used

Not
generally
used
Widelyused
Quitewidelyused

Figure 1: Relationship between stages of development and valuation approaches for
Mineral Assets.

Figure 1 is used for general guidance only. The CV should decide and stipulate, on the basisof the subject property data, which is the most appropriate approach and method. This isespecially the case where exploration and development properties are concerned.
The relevant technical and related parameters, including modifying factors, shall be disclosed
in the Valuation Report or the appended Technical Report. Technical and related parametersand modifying factors used as inputs to Mineral Asset Valuations include, but are not limited
to, Mineral Resources, Mineral Reserves, assumptions, premises, constraints (limitations),
mining recovery, mining dilution, mining plans, production schedules, metallurgical test work,
metallurgical recovery, process plant design, project engineering, construction schedules,
environmental aspects, permitting, socio-economic aspects, political risk, reclamation andrehabilitation, capital costs, operating costs, smelter terms, product marketing and sales
contracts, commodity prices, exchange rates, inflation and escalation rates, the cost of capital,and discount rates.
4.5

Use of Mineral Resources and Mineral Reserves

All Exploration Results, Mineral Resources, and Mineral Reserves on a Mineral Property
should be considered in the valuation of a Mineral Asset. Depending on the circumstances,the Income Approach, Market Approach, or Cost Approach may be more appropriate for thevaluation of a Mineral Property depending on the confidence of the Mineral Resource andMineral reserve estimates.
For Income Approach methods, it is generally acceptable to use all Proved Mineral Reserves
and Probable Mineral Reserves, and to use Measured Mineral Resources and IndicatedMineral Resources in the circumstances described below.

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It is generally acceptable to use Mineral Resources in the Income Approach if Mineral
Reserves are also present, and if, in general, mined ahead of the Mineral Resources in thesame Income Approach model, provided that in the opinion of the CP the Mineral Resources
as depicted in the Income Approach model are likely to be economically viable.
Mineral Resources and Mineral Reserves used in the Income Approach shall be estimated orconfirmed by a CP and shall be relevant to the Effective Date of the valuation. If they are not,qualifying statements should be made by the CV, as to the date of the Mineral Resources andMineral Reserves that have been relied upon.
Thus, these Mineral Resources and Mineral Reserves shall be signed off by a CP (or CPs) inaccordance with the SAMREC (or other CRIRSCO reporting Code). Additionally, Mineral
Reserves should be based on a Life of Mine Plan for an operating (going concern) mine, or atleast a Pre-feasibility Study for a mine project.
Where Measured and Indicated Mineral Resources are used in the Income Approach, thetechnical and related parameters used should be estimated or confirmed by one or more CPs
and/or Technical Experts and a qualifying statement should be included in the Valuation
Report about the level of confidence of the technical and related parameters relative to thelevel of accuracy and confidence of a Prefeasibility Study. Technical and related parameters
should be current with respect to the Valuation Date.
Where Measured and Indicated Mineral Resources are used in the Income Approach and/or
where technical, economic, financial and related parameters are at a lower level of confidence
than Prefeasibility Study level, the higher level of risk or uncertainty be should be recognizedby some means, which might include a higher discount rate, reducing the quantum of theMineral Resources, or delaying the timing of production of the Mineral Resources in the
Income Approach model, or some other appropriate means of reflecting the higher risk ofincluding Mineral Resources.
4.6

Valuation of Inferred Resources, Exploration Properties, and Exploration
Targets

While not included in Mineral Reserve estimation, markets attach value to Inferred Resources
during the exploration process. Many operations mine Inferred Resources in practice andthese needs should be taken into account in the valuation of going concerns as set out in therespective specific scope. There are instances and applications where it is required to conduct
a valuation on Inferred Resources, Exploration Properties and/or Exploration Targets. Thesemay be in circumstances such as the following (but not limited to):
•
•
•
•
•
•
•

The valuation of exploration assets in terms of IFRS 6;
The valuation of Exploration Properties for sale or acquisition, or other valuation
purposes;
The valuation of Inferred Resources in the case of a merger or acquisition;
The valuation of prospecting or mining rights that include Inferred Resources and/or
Exploration Targets;
The justification for future (warranted) expenditure on Exploration Targets andproperties;
A need to upgrade Inferred Resources to higher confidence levels;
Valuations that are required to justify expenditure to increase the level of confidence
in Exploration Targets or Mineral Resources; andPage 15 of 34

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Valuation for estate considerations, taxation, royalties, litigation etc.

These aspects may or may not be published in Public Reports, depending on the nature of
the valuation and its purpose.
Furthermore, these aspects may not be reliant on a Mineral Resource statement (in the caseof Exploration Targets), particularly where a Market or Cost Approach is applied, as decided
by the CV.
Clearly, in such cases, there are material risks associated with the valuation, in terms of thelevel of accuracy and level of confidence of the estimates, or the approach/method. The CVshould therefore qualify any such valuation with the following:
•
•
•
•
•

A clear statement of the level of confidence, and the risks associated with the valuation;
The reason for the application of the approach and method;
The reasons why the valuation may or may not be based on a SAMREC-compliant
report;
The application of more than one approach and associated method; andThe modifying factors that have been applied in the assignment.

It is not considered acceptable to use, in the Income Approach, ’potential resources’,’hypothetical resources’, or any other such categories that do not conform to the definitions ofMineral Resources and Mineral Reserves within SAMREC or the CRIRSCO definitions.
Where Inferred Resources are being valued, if, in the opinion of the CV, an Income Approach
could be applied, the CV should justify the usage, and indicate the risks associated with thevaluation.
It is important to recognize that valuations may be conducted on these early stage projects,
provided that adequate qualifying statements as to the risks/inaccuracies behind the valuation
are fully disclosed.
4.7

Scoping Study

A Scoping Study (also commonly known as a Preliminary Economic Assessment) is defined
as a study, other than a Prefeasibility or Feasibility Study, that includes an economic analysisof the potential viability of Mineral Resources. A Scoping Study includes appropriate
assessments of realistically assumed modifying factors together with any other relevant
operational factors that are necessary to demonstrate at the time of reporting that progress toa Prefeasibility Study can be reasonably justified. A Scoping Study should not be used as thebasis for estimation of Mineral Reserves.
A Scoping Study might include Measured, Indicated, or Inferred Mineral Resources, or a
combination of any of these. However, historical estimates, Exploration Results, Exploration
Targets, and Mineralization – anything not defined as a Mineral Resource or Mineral Reserve
as defined in the SAMREC Code – shall not be included in a Scoping Study.
The accuracy of input assumptions to a Scoping Study should be recognized as being at alow level of confidence. In such cases, the CV should disclose the risks associated with the
low level of accuracy and confidence that is associated with these inputs, and should disclose
premises, all assumptions, constraints, limitations, or any other relevant modifying factors andforecasts that have been used in the assessment.

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The definition of a Mineral Resource includes the requirement of ’realistic prospects ofeventual economic extraction’. This definition requires the application of an appropriate levelconsideration of potential viability, based on reasonable assumptions and forecasts, resulting
in a basic cut-off grade calculation. The CV should be aware of this requirement in quantitative
terms, and be able to justify it.
4.8

Highest and Best Use (HABU)

In circumstances where it may be required, the valuation of a Mineral Asset may be based on
the Highest and Best Use of the Asset. Under most circumstances, when undertaking a
Mineral Asset Valuation it is assumed that extraction (mining) will take place. There may,
however, be special circumstances in which other uses may be possible, especially in thecase of defunct mines, or agricultural properties over which mining is contemplated. Thisrequires consideration of non-minerals-related uses for the project, if such uses are possible.
Consideration should also be given to a change in exploration, development, or operating
strategy, or potential for leasing the project, in order to maximize its economic potential.
HABU should be considered by the CV where this is part of the brief from the Commissioning
Entity. HABU should also be considered only when the alternate use is:
•
•
•
•
•

Physically possible;
Appropriately justified;Legally permissible;
Financially feasible; andResulting in the highest value of the property being valued.

In cases where HABU valuations may be undertaken, the CV may need to rely on otherexperts to fulfil this requirement.
4.9

Dealing with risk in valuations

Valuations of Mineral Assets are inherently risky in terms of the confidence of the inputs andforecasts. The CV should highlight the uncertainties associated with the resources andmodifying factors in such a way that an informed layman can have a clear understanding of
the risks involved in the valuation. The CV should conduct a risk assessment of the valuation,using appropriate techniques.
4.10

The Behaviour of the CV

4.10.1 Principles
The CV should embrace objectivity and transparency as principles that are
fundamental to the preparation of a Mineral Asset Valuation. The CV should endeavour
to remain impartial and display sound judgement throughout the process. In order toensure transparency, the CV should follow an auditable methodology.
4.10.2 Values
These should influence the preparation of the valuation exercise to clearly demonstratethat the valuation is based on validated data and reasonable assumptions in an
impartial and balanced manner. The CV should have integrity and always apply a testof the reasonableness of the data, opinions, and assumptions used, since he/she may
be required to defend these to his/her professional peers.

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5

Appendices
APPENDIX A

Table 1 is a high-level checklist of reporting and assessment criteria and a minimum level of
disclosure to be used as a reference by those preparing reports on Mineral Asset Valuations(the Valuation Report’). The checklist is to be considered in terms of the “if not, why not”
principle and, as always, relevance and materiality are the overriding principles that determine
what information should be publicly reported.
The Valuation Report shall consist of technical information and valuation analyses. Where aCompetent Person’s Report (’CPR’), prepared in compliance with the SAMREC Code (or other
Reporting Code), is appended to or supports the Valuation Report, the technical information
can be incorporated by reference to the CPR and need only be summarized in the relevant
sections of the Valuation Report.
The valuation and reporting of mineral projects and forward-looking mine plans or statementsfrom ongoing operations are expressions of judgment predicated on knowledge andexperience. Such valuations and reports are more than arbitrary determinations; they seek tofacilitate valuation as a consequence of method. The methods employed should be valid,tested, use accepted definitions of terms and procedures, and be best suited to the valuationof the asset in question.
The Competent Mineral Asset Valuator (CV) is responsible for considering all the criteria listed
below and deciding which additional criteria should apply to the study of a particular asset.
The relative importance of the criteria will vary from asset to asset and with the legal andeconomic conditions pertaining at the time of determination.
When information is publicly reported, it shall be sufficient to enable an informed reader tomake a reasonable and balanced assessment of the significance of this information. It is,however, important to report any matters that might materially affect a reader’s understanding
or interpretation of the valuations being reported. This is particularly important if inadequate
or uncertain data would affect the reliability of, or confidence in, a valuation statement.

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TABLE 1: MINERAL ASSET VALUATION: REPORTING AND ASSESSMENT CRITERIA
Criteria

Comments

T1.0
GeneralThe Valuation Report shall contain:
The signature of the CV;
The CV’s qualifications and experience in valuing mineral properties, or
relevant valuation experience;
A statement that all facts presented in the report are correct to the best of the
CV’s knowledge;
A statement that the analyses and conclusions are limited only by thereported forecasts and conditions;A statement of the CV’s present or prospective interest in the subject
property or asset;
A statement that the CV’s compensation, employment, or contractual
relationship with the Commissioning Entity is not contingent on any aspectof the Report;
A statement that the CV has no bias with respect to the assets that are thesubject of the Report, or to the parties involved with the assignment;
A statement that the CV has (or has not) made a personal inspection of
the property; andA record of the CP’s and experts who have contributed to the valuation.
Written consent to use and rely on such Reports shall be obtained.
Significant contributions made by such experts shall be highlighted
individually.

T1.1
Illustrations

There are numerous instances (especially in the non-listed environment)
when a valuation is not accompanied by the CPR on which it is based. In
these cases, especially, diagrams/illustrations are required and shall be in
the required format.
Diagrams, maps, plans, sections, and illustrations shall be legible andprepared at an appropriate scale to distinguish important features. Maps
shall be dated and include a legend, author or information source, coordinate
system and datum, a scale in bar or grid form, and an arrow indicating north.
A location or index map and more detailed maps showing all importantfeatures described in the text, including all relevant cadastral and otherinfrastructure features, shall be included.

T1.2
Synopsis

Provide the salient features of the report – a brief description of the terms ofreference, scope of work, the Valuation Date, the mineral property; its
location, ownership, geology, and mineralization; history of exploration andproduction, current status, Exploration Targets, mineralization and/or
production forecast, Mineral Resources and Mineral Reserves, production
facilities (if any); environmental, social, legal, and permitting considerations;valuation approaches and methods, valuation, and conclusions.

T1.3
Introduction and
Scope

Introduction and scope, specifying commissioning instructions includingreference to the valuation, engagement letter, date, purpose and intended
use of the valuation. The CV shall fully disclose any interests in the Mineral
Asset or Commissioning Entity.
Any restrictions on scope and special instructions followed by the C V , andhow these affect the reliability of the v aluation, shall be disclosed.

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T1.4
Compliance

A statement that the report complies with SAMVAL shall be included.
Any variations shall be described and discussed.

T1.5
Identity, Tenure
and Infrastructure

The identity, tenure, associated infrastructure and locations of the property
interests, rights or securities to be valued (i.e. the physical, legal, andeconomic characteristics of the property) shall be disclosed.

T1.6
History
T1.7
Geological Setting
T1.8
Exploration Resultsand Exploration
Targets
T1.9
Mineral Resources
and Mineral
Reserves

History of activities, results, and operations to date shall be included.

T1.10
Modifying Factors
and Key
Assumptions

A statement of Modifying Factors shall be included, separately summarizing
material issues relating to each applicable Modifying Factor. The CV shallset out the manner in which he has satisfied himself that he can rely upon
the technical information provided.
(NOTE: All the Modifying Factors shall be listed, or references provided
to relevant definitions).
This shall include an explanation of all material assumptions and limiting
factors.

Geological setting, models, and mineralization shall be described.
Exploration programmes, their location, results, interpretation, andsignificance shall be described.
Exploration Targets shall be discussed.
Mineral Resource and Mineral Reserve statements shall be provided. They
shall be signed off by a Competent Person in compliance with the SAMREC
Code or another CRIRSCO code.
The CV shall set out the manner in which he has satisfied himself that he canrely upon the information in the CPR.

When reporting on environmental, social and governance modifying factors,
reference should be made to the ESG reporting parameters as required by
the Southern African Minerals Environmental, Social and Governance
Guideline (SAMESG) or other recognised code, e.g. Equator Principles.
T1.11
Previous
Valuations

The valuation shall refer to all available an d releva nt previous
valuations of the Mineral Asset that have been performed in a t l e a s t
the previous two years, and explain any material differences betweent h e s e and the present valuation.

T1.12
Valuation
Approaches andMethods
T1.13
Valuation Date

The valuation approaches and methods used in the valuation shall be
described and justified in full.

T1.14
Valuation Results

For the Income Approach, the valuation cash flow shall be disclosed.
For the Market Approach, the market comparable information shall be
disclosed.
For the Cost Approach, the relevant and applicable cost shall be disclosed.

T1.15

A summary of the valuation details, consolidated into single material line

A statement detailing the Report Date and the Valuation Date, as definedin this Code, and whether any material changes have occurred between the
Valuation Date and the Report Date.

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Valuation
Summary andConclusions

items, shall be provided. The Mineral Asset Valuation shall specify the key
risks and forecasts used in the valuation. A cautionary statement
concerning all forward-looking or forecast statements shall be included.
The valuation’s conclusions, illustrating a range of values, the best
estimate value for each valuation, and whether the conclusions are
qualified or subject to any restrictions imposed on the CV, shall be
included.

T1.16
Identifiable
Component Asset(ICA) Values

In some valuations, the valuation shall be broken down into Identifiable
Component Asset Values (an ICA valuation) equalling the Mineral Asset
Value. This could be, for example, due to the requirements of other valuation
rules and legislative practices including taxation (i.e. fixed property, plant,
and equipment relative to Mineral Asset Value allocations such as inrecoupment or capital gains tax calculations or where a commissioned
Mineral Asset Valuation specifies a need for a breakdown of the Mineral
Asset Valuation).
In such cases, the separate allocations of value shall be made by taking
account of the value of every separately identifiable component asset.
Allocation of value to only some, and not all, identifiable component
assets is not allowed. This requires a specialist appraisal of eachidentifiable component asset of property, plant and equipment, with the‘remaining’ value of the Mineral Asset being attributed to the Mineral
Resources and Reserves. Such valuations shall be performed by suitably
qualified experts, who may include the CV.
If the Mineral Asset Valuation includes an ICA Valuation, the CV shall satisfy
himself or herself that the ICA Valuation is reasonable before signing
off the Mineral Asset Valuation.

T1.17
Historic
Verification
T1.18
Market Assessment
T1.19
Sources ofInformation

A historic verification of the performance parameters on which the Mineral
Asset Valuation is based shall be presented.
A comprehensive market assessment should be presented.
The sources of all material information and data used in the report shall be
disclosed, as well as references to any published or unpublished technicalpapers used in the valuation, subject to confidentiality.
A reference shall be made to any other report that has been compiled,for the purpose of providing information for the valuation, including
SAMREC-compliant reports and any other contributions or reports fromexperts.

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APPENDIX B
SPECIFIC COMPETENCIES: THE COMPETENT MINERALASSET VALUATOR (CV)The CV shall be able to demonstrate specific competencies, namely to:•

Apply the Principles, Standards and Requirements of Mineral Asset Valuation (i.e.
Materiality, Competence, Transparency and Reasonableness) as described in the
SAMVAL Code);
Identify the Mineral Assets being valued in terms of the valuation scope and purpose, inorder to generate a value;
Determine the Market Value of the Mineral Asset in terms of the definitions in Appendix
C;
Interpret, apply, and incorporate the IFRS hierarchy of Fair Value Inputs in the Mineral
Asset Valuation;
Appreciate that there is a value to be determined from the underlying Mineral Assets andthe associated quantification of the future benefits and costs, or that there is a pricedetermined by argument, debate, and negotiation. These differences are expressed asvalue and price respectively, and the CV shall be able to differentiate between these two;
Select and apply appropriate valuation approaches and methods, as a matter ofprofessional judgement, for the Mineral Asset concerned, and justify that the approachis reasonable;
Justify the selection of appropriate Mineral Asset Valuation approaches andmethodologies to their peers, and understand the implications of their conclusions;
Understand, appraise and analyse Modifying Factors;
Ensure that Technical Experts/Specialists are engaged where necessary, to prepare andbe responsible for their appropriate inputs to the Report, and that their Reports can berelied upon; andPractice across international boundaries, and in such cases be familiar with local
jurisdiction and international best practices (if relevant).

•
•
•
•

•
•
•
•
•

Occupational Tasks: the Competent Mineral Asset Valuator
The Competent Mineral Asset Valuator (CV) performs one or more the following
occupational tasks:
•
•
•
•
•

Valuation of Mineral Assets;
Valuation of Mineral Assets and Mineral Asset interests/considerations used for
litigation/disputes/expert witness testimony (e.g. disputes, estates, private sales etc.);
Valuation of Minerals Assets for purposes of State;
Compile and/or sign off Mineral Asset Valuation Reports; andPerform valuations inclusive of Mineral Asset Valuations for internal use inclusive ofcorporate valuations, consolidations, projects, feasibilities etc.

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APPENDIX CGLOSSARY OF TERMSThe SAMVAL Working Group Committee conducted extensive literature research to establish
generally global industry accepted terms and definitions for conducting valuations, andspecifically mineral asset valuations. The Working Group, predominantly, extracted thepertinent terms from the following sources:
Relevant area

Details

Resource codes

SAMREC, JORC, NI43-101, CRIRSCO

Valuation codes

VALMIN, CIMVAL, SAMVAL

Listing rules

LSE/AIM, TSX, ASX, JSE, NYSE, HKSEInternational standards

IFRS, GAAP, GAVP, IVS, IVS-GN14, IVSC Guidelines, IPEVC Guidelines

International bodies

CESR/ESMA, IASB, IVSC, American Society of Appraisers, American Instituteof Certified Public Accountants, Australian Standard for Valuing Commercial
Forests, Royal Institute of Chartered Surveyors, SA Institute of Valuers

SA statutory bodies

ECSA, SACNASP, SAGC

Other

Mineral Economics Group, Wikipedia, Oxford Dictionary

The terms set out below shall, unless the context otherwise indicates, apply in relation to thisCode. This list is not exhaustive and a more comprehensive list of terms and definitions canbe found on the SAMREC/SAMVAL Committee (SSC) website.

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Terms

Description

PRINCIPLES and GUIDANCE
Competence and Competent apply to a suitably qualified skilled and experienced
person who is a member of a Statutory Body, Professional Body, or RPO with an
enforceable Code of Conduct (Ethics) and a Disciplinary Code that includes theability to discipline and expel a member.
Competency (principle)
In the context of Mineral Asset Valuation, competence for a Valuer also requires’appropriate technical skills, experience and knowledge of the subject of thevaluation, the market in which (the Mineral Asset) trades and the purpose of thevaluation’ (IVS Framework 4).
Whether Independence is required to be demonstrated or not, the Valuator should
always ensure that his/her judgement is impartial, and not biased by any pressure
from the commissioning entity, or from any other source (IVS GN14 4.2(e), 2013).
Impartiality

Independence

The author of the Public Report should be satisfied that his work has not been
unduly influenced by the organization, company, or person commissioning areport or any report that may be deemed a Public Report, that all assumptions
are documented, and that adequate disclosure is made of all material aspects
that the informed reader may require to make a reasonable and balanced
judgement thereof.
‘Independence’ or ‘Independent’ means that other than professional fees anddisbursements received or to be received in connection with the valuation
concerned, the Valuer or Expert has no pecuniary or beneficial (present orcontingent) interest in any of the property or interest being valued, nor has any
association with the entity commissioning the valuation nor any holder(s) of any
interests in any subject property that is likely to create an apprehension of bias [IVSEITP Note 4.6, 2013].
‘Materiality’ and ‘Material’ pertain to information that, if omitted, could affect thejudgement of the reader as to the validity of the estimate, opinion, or data being
reported by the Valuer.

Materiality (principle)

Objectivity

A Public Report contains all the relevant information that investors, their professional
advisors and/or the Commissioning Entity would reasonably require, and expect tofind, for the purpose of making a reasoned and balanced judgement regarding theMineral Asset Valuation.
Not to allow conflict of interest, or undue influence or bias to override professionalor business judgement [IVS GN14 4.2(b), 2013]
Reasonableness means that other appropriately qualified and experienced CVs withaccess to the same information, would estimate the value of the Mineral Asset at asimilar order of magnitude for the same Valuation Date and Basis of Value.

Reasonableness(principle)

A reasonableness test serves to identify valuations that may be out of step withindustry standards. Where a determination turns on reasonableness, the test is anobjective, rather than a subjective one, in that it turns on what a Competent Valuer
acting reasonably would conclude in the circumstances [IVS EITP Note 4.15].
Reasonableness, in reference to the Valuation of a Mineral Property, means that
other appropriately qualified and experienced valuators with access to the same
information would value the property at approximately the same range (IVS GN14
3.3.30, 2013).

Transparency (principle)

The reader of a Public Report/Mineral Asset Valuation shall be provided with
sufficient information, the presentation of which is clear and unambiguous, tounderstand the report and not be misled.

VALUE TYPES

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Fair Value

Intrinsic ValueFor the purposes of financial reporting, Fair Value is ‘The estimated price that would
be received to sell an asset or paid to transfer a liability in an orderly transaction
between knowledgeable and willing parties at the measurement date (an exit price)[IFRS], other than in a liquidation sale’ (US GAAP, FAS 157). (IFRS definition).
For valuations that are not applicable to financial reporting, fair value is ’theestimated price for the transfer of an asset or liability between identified
knowledgeable and willing parties that reflect the respective interests of thoseparties’ (IVS Definitions and Framework 38).
The amount considered, on the basis of an evaluation of available facts, to be the’true’, ’real’, or underlying’ worth of an item. Thus it is a long-term, non-market value
concept that smooths out short-term price fluctuations. In the case of real estate,
this would be the value of the property taking into account the structure, size,
location, etc. as opposed to taking into account the current state of the market.
In mining, the intrinsic value refers to the fundamental value based on the technicalinputs, and a cash flow projection that creates a net present value (NPV). Few ofthese inputs are market-related, except possibly for metal price, benchmarked
costs, and the discount rate applied (GN5).

Investment Value’The value of an asset to the owner or a prospective owner for individual investment
or operational objectives’ (IVS Definition and Framework 36).

Market Value’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 lengthtransaction after proper marketing wherein the parties had each acted
knowledgeably, prudently, and without compulsion’ (IVSC, IFRS).

Special Value’An amount that reflects particular attributes of an asset that are only of value to aSpecial Purchaser’ (IVS Definitions and Framework 43).

Synergistic Value’An additional element of value created by the combination of two or more assets orinterest where the combined value is more than the sum of the separate values’ (IVS
Definitions and Framework 47).

STUDY TYPES

Feasibility Study

A comprehensive design and costing study of the selected option for thedevelopment of a mineral project in which appropriate assessments have been
made of realistically assumed geological, mining, metallurgical, economic,
marketing, legal, environmental, social, governmental, engineering, operational,
and all other modifying factors that are considered in sufficient detail to demonstrate,
at the time of reporting, that extraction is reasonably justified (economicallymineable) and the factors reasonably serve as the basis for a final decision by aproponent or financial institution to proceed with, or finance, the development of the
project. The overall confidence of the study should be stated.

Prefeasibility Study

A comprehensive study of the viability of a range of options for a mineral project thathas advanced to a stage at which the preferred mining method in the case ofunderground mining, or the pit configuration in the case of an open pit, has been
established and an effective method of mineral processing has been determined. It
includes a financial analysis based on realistic assumptions of technical,
engineering, operating, and economic factors and the evaluation of other relevant
factors that are sufficient for a Competent Person, acting reasonably, to determine
if all or part of the Mineral Resource may be classified as a Mineral Reserve. The
overall confidence of the study should be stated. A Prefeasibility Study is at a lower
confidence level than a Feasibility Study.

Scoping Study

A Scoping Study (also commonly known as a Preliminary Economic Assessment)
is an order-of-magnitude technical and economic study of the potential viability of
Mineral Resources that includes appropriate assessments of realistically assumed
modifying factors together with any other relevant operational factors that are

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necessary to demonstrate at the time of reporting, whether or not the project ispotentially viable and if it can be reasonably justified to recommend proceeding to a
Prefeasibility Study.
The accuracy of a Scoping Study is likely to be low due to high-level assumptions
based on industry benchmarks, vendor productivity information, and the experienceof the CP.
If Inferred Mineral Resources are used, then this should be disclosed in terms ofClause 25 of the SAMREC Code and the entity shall include a cautionary statement
such as:‘The Scoping Study referred to in this report is based on low-level technical andeconomic assessments. It is preliminary in nature, and includes Inferred Mineral
Resources which are insufficient to provide certainty that the conclusions of the
Scoping Study will be realized.’
Historical estimates, Exploration Results, Exploration Targets, and mineralization
may not be included in a Scoping Study.
While initial mining and metallurgical cases may have been developed during a
Scoping Study, a Scoping Study may not be used as the basis for the estimation of
Mineral Reserves.
PROPERTY TYPES / STAGES OF DEVELOPMENT‘Advanced’ means tenure holdings where considerable exploration has been
undertaken and specific targets have been identified that warrant further detailed
evaluation, usually by drill testing, trenching, or some other form of detailed
Advanced-stage
geological sampling.
exploration property

Defunct property

A Mineral Resource estimate has been defined and a Scoping Study has been
applied to determine whether there are reasonable prospects for eventual economic
extraction.
A Mineral Asset on which the Mineral Resources and Mineral Reserves have been
exhausted and exploitation has ceased, and that may or may not have residual
assets and liabilities.

Development property

A Mineral Asset that is being prepared for mineral production and for which
economic viability has been demonstrated by a Feasibility Study or Prefeasibility
Study and includes a Mineral Asset which may not be financed or is underconstruction.

Dormant property

A Mineral Asset that is not being actively explored or exploited, in which the Mineral
Resources and Mineral Reserves have not been exhausted, and that may or may
not be economically viable.

Early stage exploration
property

Early stage means tenure holdings where mineralization may or may not have been
identified, and where Mineral Resources have not been defined.
An Exploration Target is a statement or estimate of the exploration potential of amineral deposit in a defined geological setting where the statement or estimate,
quoted as a range of tons and a range of grade or quality, relates to mineralisation
for which there has been insufficient exploration to estimate Mineral Resources.

Exploration Target
An ‘Exploration Target’ is a concept of mineralization with respect to type, quantityand quality, which would be of interest to an exploration or mining company. There
shall be a likelihood that this exploration target occurs in an area of geologicalprospectivity for that commodity and mineralization type. An Exploration Target

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need not represent any discovered mineralization, nor does it imply reasonable andrealistic prospects for possible economic extraction. Any such information relating
to an Exploration Target shall, however, be expressed so that it cannot be
misrepresented or misconstrued as an estimate of a Mineral Resource or Mineral
Reserve.

Exploration Property

A Mineral Asset that is being actively explored for mineral resources. Exploration
Properties have asset values derived from their potential for the discovery of mineraldeposits. Exploration Property interests are bought and sold in the market. Many ofthese transactions involve partial-interest arrangements, such as farm-in, option or
joint-venture arrangements.

Mineral Asset(s)Any contractual or permanent right to explore for, or mine (or both) or otherwise
extract minerals (including petroleum) from the Earth, that has been granted or anentity holding such property or the securities of such an entity, including but notlimited to, all corporeal and incorporeal property, mineral rights, mining titles, mining
leases, intellectual property, personal property (including plant equipment andinfrastructure), mining and exploration tenure and titles or any other right held or
acquired in connection with the finding and removing of minerals located in, on ornear the earth’s crust. Mineral Assets can be classified as Dormant Properties,
Exploration Properties, Development Properties, Production Properties or Defunct
Properties.

Personal property

Real property includes all the rights, interests, and benefits related to the ownershipof real estate. An interest or interests in real property is normally demonstrated bysome evidence of ownership (e.g., a title deed) separate from the physical realestate. Real property is a non-physical concept.

Production property

A Mineral Asset that is in production. Tenure holdings, particularly mines, well-fields,
and directly connected processing plants that have been commissioned and are in
production.

Real estateLand and all things that are a natural part of the land (for example trees andminerals), things that have been attached to the land, (for example, buildings andsite improvements), all permanent building attachments, (for example mechanicaland electrical plant providing services to a building), that are both below and above
the ground (as defined in the IVSC Glossary).

Real property

Real property includes all the rights, interests, and benefits related to the ownershipof real estate (as defined in the IVSC Glossary).

VALUATION APPROACHESThe Cost Approach relies on historical and/or future amounts spent on the Mineral
Asset.
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 bypurchase or by construction’ (IVS Definitions), and includes methods based on
expenditures.
The Cash Flow Approach relies on the ‘value-in-use’ principle and requires
determination of the present value of future cash flows over the useful life of theMineral Asset.

Income Approach’Provides an indication of value by converting future cash flows to a single current
capital value’ (IVS Definitions). For estimation of Market Value, the present value
capitalization shall be generated using a discount rate derived from market
conditions.

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Market Approach

The Market Approach relies on the principle of ‘willing buyer, willing seller’ andrequires that the amount obtainable from the sale of the Mineral Asset is determined
as if in an arm’s-length transaction.
’Provides an indication of value by comparing the subject property with identical orsimilar properties for which the price information is available’ (IVS Definitions). The
Market Approach is also known as the sale comparison approach.

Valuation Approach

A grouping of valuation methods for which there is a common underlying rationale
or basis (refer to Figure 1).

Valuation method

A particular or systematic procedure used to estimate value.

TECHNICAL EXPERTS and PROFESSIONAL ORGANIZATIONS / INSTITUTESA ‘Competent Person’ is a person who is registered with SACNASP, ECSA or
SAGC, or is a Member or Fellow of the SAIMM, the GSSA, IMSSA, or a Recognized
Professional Organization (RPO). These organizations have enforceable
Competent Person
disciplinary processes, including the powers to suspend or expel a member. A
complete list of recognized organizations will be promulgated by the SSC from time
to time. The Competent Person shall comply with the provisions of the relevant
promulgated Acts.
A Competent Valuator is a person who is registered with ECSA, SACNASP, or
SAGC, or is a Member or Fellow of the SAIMM, the GSSA, SAICA, or a Recognized
Professional Organization (RPO) or other organizations recognised by the SSC on
behalf of the JSE Limited.
A Competent Valuator is a person who possesses the necessary qualifications,Competent Valuator
ability, and relevant experience in valuing mineral assets. A person called upon tosign as a Competent Valuator shall be clearly satisfied in their own mind that they
are able to face their peers and demonstrate competence in the valuation
undertaken.
External Valuator/Valuer

A Valuator/Valuer who is not employed by the owner or manager of an asset.
A Recognized Professional Organization. A RPO shall:•

RPO

Technical Expert

Be a self-regulatory organization covering professionals in mining or exploration
or both;•Admit members primarily on the basis of their academic qualifications andexperience;•
Require compliance with the professional standards of competence and ethics
established by the organization;•
Have disciplinary powers, including the power to suspend or expel a member;
and•Have been accepted by SSC Committee as a RPO on behalf of the JSE Limited
A person who may be retained by the Valuer to review technical information,
prepare sections of Valuation Reports, or provide Inputs concerning specialized
matters about which the Valuer is not personally competent. The Expert shall havesufficient training and experience relevant to the subject matter for which he or she
is being retained to review or provide Inputs.

TECHNICAL TERMS and OTHERAppraisal
See valuation.
Asset

An Asset is a resource (not a Mineral Resource) controlled by the entity as a resultof past events and from which future economic benefits are expected to flow to theentity (as defined by the International Accounting Standards Board).

Basis of value’A statement of the fundamental measurement assumptions of a valuation’ (IVS
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other bases of value such as Fair Value, Market Value, Investment Value, Special
Value, or Synergistic Value.
Commissioning Entity

The organization, company, or person commissioning a Mineral Asset Valuation.

Effective Date

The day, month, and year at which the Market Value is deemed valid.

Evaluation

A broad physical, technical, legal, economic and other assessment, generally
sought for an investment decision. Evaluations include Feasibility Studies,
Prefeasibility Studies, and Scoping Studies.

ExpertA person who may be retained by the CV to review technical information, prepare
sections of Valuation Reports, or provide inputs concerning specialized mattersabout which the CV is not personally competent. The Expert shall have sufficienttraining and experience relevant to the subject matters for which he or she is being
retained to review or provide inputs.

Extractive industries

Entities and individuals involved in exploration, and the extraction, associatedprocessing, and marketing of natural resources located on, in or near the Earth’s
crust. This applies to the point of first possible sale of any particular commodity andexcludes properties and activities that are downstream from a refinery or processing
plant.
They are composed of the minerals Industry and the petroleum industry. They do
not include the industry sector focused on extraction of water from the Earth, butthey do include extractions of geothermal fluids for energy content.

Financial ReportingStandards

Generally Accepted
Valuation Standards

South African statements of generally accepted accounting practice as defined in
the Companies Act.
The International Valuation Standards Committee’s (IVSC) Concepts Fundamental
to Generally Accepted Valuation Principles set forth terms and concepts that are
fundamental to all valuations.
The purpose of Guidance Note No.1 (GN 1) is to amplify those fundamentals sothey may be better understood in valuations of real property.

Going concern

The entity is normally viewed as a going concern, that is, as continuing in operation
for the foreseeable future. It is assumed that the entity has neither the intention nor
the necessity of liquidation or of curtailing materially the scale of its operations (IVS
Glossary).

Highest and Best Use(HABU)The use of an asset that maximizes its Investment Value and that is physicallypossible, legally permissible, and financially feasible (as defined by the IVSC
Glossary).

Inputs

Inputs means all information used in the Valuation.

Internal Valuator/Valuer

A CV who is employed by the company, or has an interest in it, and who is then not
fully independent.

License, permit, lease,right, or other similar
entitlement

Life of Mine Plan

Any form of licence, permit, lease or other entitlement granted by the relevant
Government in accordance with its mining legislation that confers on the holder
certain rights to explore for or extract minerals (or both) that might be contained in
the designated area. Alternatively, any form of title that may prove ownership/tenureof the minerals.

A design and costing study of an existing mining operation in which appropriate
assessments have been made of realistically assumed geological, mining,
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sufficient detail to demonstrate at the time of reporting that extraction is reasonably
justifiable. The level of study should be equivalent to a Prefeasibility Study.

Material information

Mineable

Material information is any information relating to the business and affairs of acompany that results in or would reasonably be expected to result in a significant
change in the market price or value of any of the company’s assets. Material
information consists of both material facts and material changes related to thebusiness and affairs of a company.
Those parts of the orebody, both economic and uneconomic, that are extracted
during the normal course of mining.

Mine design

A framework of mining components and processes taking into account such aspects
as mining methods used, access to the orebody, personnel and material handling,
ventilation, water, power, and other technical requirements, such that mine planningcan be undertaken.

Mine planning

Production planning, scheduling and economic studies, within the mine design, canbe undertaken, taking into account geological structures and mineralization,
associated infrastructure and constraints, and other relevant aspects.

Mineral deposit

A mass of naturally occurring mineral material, usually of economic interest, without
regard to mode of origin. No commercial value is implied.

Mineral occurrence

Any economic mineral in any concentration found in bedrock or as float; especiallya valuable (or potentially valuable) mineral in sufficient concentration to suggest
further exploration.

Mineralization

Mineralization is defined as a concentration (or occurrence) of material of possible
economic interest, in or on the Earth’s crust, for which quantity and quality cannot
be estimated with sufficient confidence to be defined as a Mineral Resource.

Mineral Asset Valuation

The valuation of a Mineral Asset that has been completed by a Competent Mineral
Asset Valuator.

Mineral Reserve

The economically mineable material derived from a Measured or Indicated Mineral
Resource, or both. It includes diluting materials and allows for losses that are
expected to occur when the material is mined. Appropriate assessments to aminimum of a Prefeasibility Study for a project, or a Life of Mine Plan for an
operation, shall have been carried out, including consideration of, and modification
by, realistically assumed mining, metallurgical, economic, marketing, legal
environmental, social, and governmental factors. Where the term ‘Ore Reserve’ isused, this is synonymous with the term ‘Mineral Reserve’.

Mineral Resource

A concentration or occurrence of material of economic interest in or on the Earth’s
crust in such form, quality, and quantity that there are reasonable and realistic
prospects for eventual economic extraction. The location, quantity, grade, continuity,and other geological characteristics of a Mineral Resource are known, or estimatedfrom specific geological evidence, sampling, and knowledge interpreted from anappropriately constrained and portrayed geological model. Mineral Resources are
subdivided, and shall be so reported, in order of increasing confidence in respect ofgeoscientific evidence, into Inferred, Indicated, and Measured categories.

Modifying Factor

Modifying Factors include, but may not be limited to, premises, assumptions,
restrictions (limitations), mining, metallurgical, economic, marketing, legal,
environmental, social, and governmental considerations. They are applied whenconverting Mineral Resources to Mineral Reserves.

Petroleum

Petroleum is defined as a naturally occurring mixture consisting of hydrocarbons in
the gaseous, liquid, or solid phase. Petroleum may also contain non-hydrocarbon
compounds, common examples of which are carbon dioxide, nitrogen, hydrogensulphide, and sulphur. In rare cases, non-hydrocarbon content could be greater than

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50% as defined in the Petroleum Resources Management System (PRMS, available
from the Society of Petroleum Engineers: http://www.spe.org/industry/).
Petroleum industry

Entities involved in exploration for, and the mining, processing and marketing of
petroleum. This excludes assets and activities that are downstream from a refineryor processing plants.

Petroleum Resources andPetroleum Reserves

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

Public Report

In the context of Mineral Asset Valuation, Public Reports are all those reports
prepared for the purpose of informing investors or potential investors and theiradvisers on Mineral Asset Valuations They include, but are not limited to,companies’ annual and quarterly company reports, press releases, information
memoranda, technical papers, website postings, and public presentations.
These Public Reports may be in printed or electronic media (including social media)
and will include JSE circulars, reports as required by the Companies Act, reports forother regulatory authorities or as required by law.

Public Reporting

Public Reporting refers to any documentation which may find its way into the publicdomain. It does not refer only to reporting or documentation by companies listed ona securities exchange, but also includes documents compiled by/for privatecompanies or individuals.While every effort has been made within the Code to covermost situations likely to be encountered in Public Reporting, there may be occasions
when doubt exists as to the appropriate form of disclosure. On such occasions,users of the Code and those compiling reports to comply with the Code should be
guided by its intent, which is to provide a minimum standard for Public Reporting
and the guidelines of materiality, transparency, and competence, and to ensure thatsuch reporting contains all information which stakeholders, interested parties,
investors, and their professional advisers would reasonably require, and reasonably
expect to find in the report, for the purpose of making of a reasoned and balanced
judgment regarding the Exploration Results, Mineral Resources, or Mineral
Reserves being reported.

Royalty or royalty interest

The amount of value accruing to the benefit of the royalty owner from the royalty
share of production, in money or product, free of production costs. Royalty excludes
marketing costs.
The South African Code for the Reporting of Oil and Gas Resources.

SAMOG CodeThe SAMOG Code provides the basis for minimum disclosure of information for
public reporting of oil and gas reserves and resources.

SAMREC CodeThe South African Code for Reporting of Exploration Results, Mineral Resources
and Mineral Reserves.

Solid minerals

Any substance occurring naturally in or on the Earth, in or under water, or in tailings
or dumps and having been formed by or subjected to a geological process. Solidminerals include sand, stone, rock, gravel, clay, soil, and any mineral occurring instockpiles or in residue deposits but exclude water, oil, and gas.

Special Assumption’An assumption that either assumes facts that differ from the actual facts existing at
the Valuation Date or that would not be made by a typical market participant in atransaction on the Valuation Date’ (IVS Definitions and Framework 50-51)

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SSC Committee

The SAMREC/SAMVAL Committee.

The Companies Act

The Companies Act No 71 of the Republic of South Africa of 2008, as amended, or
any law that may wholly or in part replace it from time to time.
Valuation is the estimation of the value of a Mineral Asset in money or monetaryequivalent.

Valuation

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)(IVS Framework 9).
The word ‘valuation’ is synonymous with the word ’appraisal’ as used in certain
jurisdictions, including the USA. In contrast, the word ’appraisal’ is used in Australia
for the broader activity of evaluation, including the preparation of Resource andReserve estimates.

Valuation Date

“The date on which the opinion of value (or valuation) applies” (IVS Definitions), asdistinguished from the ‘Report Date’.

Valuation Report

A document that reports the results of the valuation of a Mineral Asset(s) thatadheres to the fundamental principles and guiding principles as required, contains
the required information, and conforms to the relevant national code or standards
and relevant legal and regulatory requirements. A Valuation Report may be a Public
Report

RISK

Uncertainty

Uncertainty is a measure of our inability to assign a single value to a possible eventand defined as the variability of possible outcomes (e.g., gains or losses) aroundtheir mean (expected) value. The quantification of uncertainty is the difference
between the true value of a natural outcome and an estimate of its value. Bias
occurs when values are systematically over- or underestimated.

Risk

Risk is a state of uncertainty where some possible outcomes have an undesired
effect or cause significant loss. The probability of something happening multipliedby the resulting cost or benefit is the ‘Risk Factor’ and is used to compare levels of
risk. In the context of valuation, the term ‘risk’ refers to the probability of a projectdelivering an undesirable financial outcome.

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APPENDIX D
LIST OF ABBREVIATIONS USED IN THIS CODE
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AIMA – Alternative Investment Management Association
ASX – Australian Stock Exchange
CESR/ESMA – Committee of European Securities Regulators
CIMVAL – Standards and Guidelines for the Valuation of Mineral Properties: Special
Committee of the Canadian Institute of Mining and Metallurgy and Petroleum on Valuationof Mineral Properties
CRIRSCO - Committee for Mineral Reserves International Reporting Standards
ESMA – European Securities and Markets Authority
GAAP – Generally Accepted Accounting Principles
GAVP – Generally Accepted Valuation Principles
HKSE – Hong Kong Stock Exchange
IASB – International Accounting Standards BoardIFRS – International Financial Reporting Standards
IMVAL – International Mineral Valuation Committee
IPEVC Guidelines – International Private Equity and Venture Capital (Valuation
Guidelines)
IPEVC – International Private Equity and Venture Capital (Valuation Guidelines)
IVS – International Valuations Standards
IVSC – International Valuation Standards Committee
IVSC Guidelines – International Valuation Standards Committee Guidelines
IVS-GN14 – International Valuation Standards Guidance note 14
JORC – Australasian Code for Reporting Mineral Resources and Ore Reserves
JSE – Johannesburg Stock Exchange
LSE/AIM – London Stock Exchange/Alternative Investment Market
MICA – Mineral Industry Consultants Association
NYSE – New York Stock Exchange
RICS – Royal Institution of Chartered Surveyors
SACNASP – South African Council for Natural Scientific Professions
SAGC – South African Geomatics Council
SAMESG - the Southern African Minerals Environmental, Social and Governance Guideline
TSX – Toronto Stock Exchange
VALMIN – Technical Assessment and Valuation of Mineral Assets and Securities for
Independent Expert Reports

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