Скачать или смотреть Mineral Value Chain and Mineral Exploration as Business

Mineral Exploration as Business:
The Mineral Industry value chain starts with a greenfield
reconnaissance concession as its primary raw material. Value is added
to the primary raw material through geological work and it progresses
through the stages of prospecting, exploration, feasibility, mining,
processing and mineral based industries. The value of the tenement
progressively increases with every de-risking activity. Objective is to
systematically address all potential risks to a feasible mine and provide
a fully de-risked property for mining.
The early stage part of the mineral industry value chain from
greenfield prospecting to feasibility is the space where exploration
businesses operate. There are generative businesses at lower end of
this chain that specialize in early stage project identification. Then
there are exploration businesses that develop these projects through
surface exploration and preliminary drilling to target identification.
And finally there are advanced explores that complete detailed drilling,
beneficiation tests, economic analysis and feasibility. These are broad
zones with some companies specializing into one activity and some
having broader scope.
Primary raw material for this exploration value chain is an
exploration tenement and the final product is a feasible fully permitted
mining lease which in turn becomes raw material for the miner. As
their projects progress, explorers raise finance through innovative tools
like discounted valuation, warrants, options, private equity placements,
share sales, joint ventures, pledging future production, forward selling
property etc. This finance is primarily used to further the project de-
risking. Every round of financing is done at progressively higher
valuation as the exploration work adds value to the tenement and
consequently accrues capital gains to the owners of the shares of the
explorer. As the explorer keeps declaring good results and moving
towards feasibility the value of their company shares can rise multifold
in a very short time. Early investors stand to gain multiple
times their investment in successful projects sometimes over 500% in
one year.