Issues of assessing capital expenditures for setting mineral deposits into operation are considered. Existing methods have a number of advantages and disadvantages, but they are determined separately for each type of fixed assets of the field. A simple method, that allows to quickly and easily determine the amount of capital costs for setting gold deposit into operation, based on data on ore reserves, as well as unit costs, taking into account the degree of infrastructure development at the deposit, is proposed. Presented methodology allows one to determine the real amount of initial capital expenditures of a gold deposit, calculate their marginal (recommended) value, and also assess the balance of capital investments in the development of a particular deposit, taking into account the existing one in the company's investment portfolio. The methodology is based on analysis of empirical material, which used real capital costs for development of gold deposits (and foreign-metal impurities) by Polymetal International plc. As a result of a statistical study, method for determining the marginal cost of a field is obtained.
The paper focuses on the problems of geologic and economic assessment of mineral deposits. Existing methods have certain advantages and disadvantages, but always rely on unified assessment criteria that fail to take into account specific parameters of each deposit. The author proposes a method of quick and simple cost assessment of gold ore deposits based on ore reserves data. Suggested approach allows to evaluate a true price of gold ore deposits that takes into account field preparation and development costs, as well as to calculate threshold (recommended) amount of investment. Besides that, the method permits to assess the contribution that mineral reserves and resources make to the cumulative market price of the mining company. The method is based on the analysis of empirical data from actual purchases of gold ore (and associated metals) deposits made by Polymetal International PLC. The results of statistical research are incorporated in a formula of threshold deposit price taking into account field preparation and development costs. Comparison between deposit prices obtained from actual purchase deals and forecast results demonstrates high convergence rate (R = 0.97). The greatest error in the forecast results is attributed to insufficient attention to the geographical position of deposits, existence of infrastructure and relevant facilities. The method has been tested on three purchases of gold ore assets made by Polymetal International PLC and demonstrated high convergence with actual deal prices.
