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

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’s career & qualifications 6:45 Impetus for Craig’s book ‘Mining Economics Explained’ 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’s 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’s 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 Sign up for our free newsletter and receive interview transcripts, stock profiles and investment ideas: http://eepurl.com/cHxJ39 This interview was not sponsored. The content found on MiningStockEducation.com is for informational purposes only and is not to be considered personal legal or investment advice or a recommendation to buy or sell securities or any other product. It is based on opinions, SEC filings, current events, press releases and interviews but is not infallible. It may contain errors and MiningStockEducation.com offers no inferred or explicit warranty as to the accuracy of the information presented. If personal advice is needed, consult a qualified legal, tax or investment professional. Do not base any investment decision on the information contained on MiningStockEducation.com or our videos. We may hold equity positions in some of the companies featured on this site and therefore are biased and hold an obvious conflict of interest. MiningStockEducation.com may provide website addresses or links to websites and we disclaim any responsibility for the content of any such other websites. The information you find on MiningStockEducation.com is to be used at your own risk. By reading MiningStockEducation.com, you agree to hold MiningStockEducation.com, its owner, associates, sponsors, affiliates, and partners harmless and to completely release them from any and all liabilities due to any and all losses, damages, or injuries (financial or otherwise) that may be incurred.