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The Potential Value of a Mining Property

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  • Sorin-Iuliu Mangu

    (University of Petroşani, Romania)

Abstract

Analyzing the possibilities to using the traditional assessment models (patrimonial and based on result updating) in the particular case of the mining companies in Romania, it led to conclusions that show its non-applicability at least in certain forms and in specific special situations. Thus, the special assets value in the mine patrimonies cannot be approached unless on the context of continuing exploitation activities and in a tight relationship with the mineral substances reserves to whose turn to profit the activities would take part in. Due to this usage particularity of the production factors capital and deposit the value approach through flow, as an economic value seem more opportune. In present though, the most majority of the mining companies in Romania operate with exploitation losses which are partially or totally covered by state finance subventions. This completely improper operating from an economical point of view rise insurmountable barriers for usage of assessment patterns based on updating the future cash flows. In these circumstances, it appears as a requirement the necessity of developing new assessment patterns that would be able to offer a relevant image, closer to reality, over the value of an operational enterprise or over the value of a mining perimeter that is partially developed. Such a model is developed as follows.

Suggested Citation

  • Sorin-Iuliu Mangu, 2009. "The Potential Value of a Mining Property," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 9(4), pages 55-62.
  • Handle: RePEc:pet:annals:v:9:i:4:y:2009:p:55-62
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    References listed on IDEAS

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    1. Aurelian Simionescu & Florian Buşe & Petru Hodor & Sorin Mangu, 2002. "On the valuation of coal property," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 2, pages 180-189.
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