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About the SAMVAL code |
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Tuesday, 22 January 2008 |
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The process for establishing SAMVAL was initiated through an open meeting at a colloquium convened by the SAIMM in March 2002. Various papers and articles were published on the matter and the colloquium called for comment and mandates.
Representatives from the Australasian Institute of Mining and Metallurgy (AusIMM), the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), the International Accounting Standards Board (IASB) and the International Valuation Standards Committee (IVSC) presented at the colloquium.
Thereafter a working group was formed originally under the chairmanship of Alastair Macfarlane followed by Rob Croll. The draft SAMVAL Code was completed in late 2007 and circulated for industry comment.
The SAMVAL Code was officially launched in April 2008.
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Guidance Note: SAMVAL Code: Interpretation of Clause 26 |
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Tuesday, 20 January 2009 |
SAMVAL Code: Interpretation of Clause 26.
Clause 26 states:
“The results from the Valuation approaches and methods employed must be weighed and reconciled into a concluding opinion of value. The reasons for giving a higher weighting to one method or approach must also be stated…”
Valuators should be aware that the use of the words “weighed” and “weighted” did not intend for a subjective weighting to be applied to the individual value ranges determined by the Cash Flow, Market and Cost Approaches to arrive at a final value.
Each mineral asset evaluated should have a primary Valuation approach used to determine its value with a second Valuation approach (less preferred than the primary) used to provide corroborative evidence. In evaluating (“weighing”) the various results, the determination (“weighting”) of the final value is dependent on the Valuator’s experience and judgement.
The use of subjective weightings drawn from more than one Valuation approach and aggregating such weightings in arriving at a final value is therefore not considered compliant with the SAMVAL Code.
19 January 2009 |
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