Comparative approach in cost estimation of quartz sand deposit of Leningrad region

Abstract

The comparative way is based on the idea that the lot’s price can be defined by the analysis of the transactions with the lots that have the same characteristics. This method includes following operations: observing the transactions with the objects similar to the current one; revealing the links between prices and characteristics; calculating the most appropriate price that can be paid for the lot which is being evaluated. The evaluators’ poll, organized by Canadian Institute of Mining and Metallurgy, revealed that the comparative method is one of the most popular ways of practical evaluation. This approach has many advantages, such as: clean logic and convincing results in case of having enough data on similar transactions; easy check of initial data; low labor-intensiveness. The basic disadvantage of the comparative approach is that it can be used in terms of having all necessary information about similar lots that has been transacted in the same commercial conditions only.