How to Value an Ore Deposit with Mining Economics Expert Craig Hutton

Published: April 28, 2022, 1:10 p.m.

Craig Hutton discusses the many nuances and variables to valuing an ore deposit in this 50-minute episode. He is the author of 'Mining Economics Explained: A Guide for Boards, Executives, Managers and Investors'. Craig is a veteran of 35 years in the international mining arena holding qualifications in geology, economics and finance, as well as a Masters degree in Business Administration. His theoretical grounding combined with over 25 years of experience in applied mining economics serves as the foundation to the writing of his book and approach to valuing ore bodies.

0:00 Introduction
1:38 Craig\u2019s career & qualifications
6:45 Impetus for Craig\u2019s book \u2018Mining Economics Explained\u2019
10:34 Undercapitalized developers today vs overcapitalized miners a decade ago
14:05 Will gold producer CEOs make the same mistakes of last cycle?
16:09 Percentage of feasibility studies that achieve forecasted economics?
19:36 How to factor in inflation into project valuations
21:44 What discount rate to use for valuation?
26:02 Craig\u2019s experience overseeing feasibility studies
27:50 Can we trust feasibility studies?
30:05 Juniors should move from PEA to completed feasibility study within 18mos
35:40 PEA should be a viability study not a feasibility study
38:53 PEA should be more than a marketing document
41:50 Question to ask a development company CEO during due diligence
45:29 Analyzing a past-producing ore body

Craig on LinkedIn: https://www.linkedin.com/in/craig-h-3755a612
Craig\u2019s book on Smashwords: https://www.smashwords.com/books/view/1142111
UK Amazon: https://www.amazon.co.uk/Mining-Economics-Explained-Executives-Investors-ebook/dp/B09XRD2ZFB
USA Amazon: https://www.amazon.com/Mining-Economics-Explained-Executives-Investors/dp/B09XSS78QY
Canada Amazon: https://www.amazon.ca/Mining-Economics-Explained-Executives-Investors/dp/B09XSS78QY

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