Updated measured, indicated and inferred valuations
We have re-run our analysis to determine differentiated values for ‘measured’, ‘indicated’ and ‘inferred’ resource ounces to include the Canadian, Australian and South African markets as well as the London one. In doing so, we have been able to determine that the average value of a ‘measured’ resource ounce globally is US$340/oz, while that of an ‘indicated’ ounce is US$159/oz and that of an ‘inferred’ ounce is US$34/oz (excluding Witwatersrand ounces). An average ounce is worth US$158.56/oz, which contrasts sharply with both its cost of discovery (US$8.81/oz, as determined by leading international accountancy firm BDO – see inside) and an historic benchmark valuation of US$35/oz.
Different markets favour different resources
Notwithstanding these new global averages, there are wide variations in the valuations attributed to ounces in different categories by different centres of global mining finance. While Australia ascribes the highest average value to ‘inferred’ and ‘measured’ ounces, Canada does so for ‘indicated’ ounces. London places a below average valuation on ‘inferred’ and ‘indicated’ ounces, but an above average one on ‘measured’ ounces.
Not all companies optimally valued
Any decision by a company on which market to list in should therefore be taken within the context of the categories into which its resources fall. Based purely on the balance of their resources currently, we estimate that up to 57 companies could enhance their valuations (excluding costs) by either migrating from one exchange to another or considering a dual listing.
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