When a company acquires a piece of land and must develop operations to mine the gold, how would you go about determining the incremental NAV increase the acqusition has for the acquirer? I have the capex costs for development, the acquisition costs, and the price and cost of gold as well as mining forecasts. What else do I need to look at and how would I set it up?
| +160 | UBS Tech layoff | 52 | 1d |
| +153 | Analyst: Why is UBS IB doing worse than peers?, UBS CFO: No Comment | 24 | 11h |
| +146 | UBS’s M&A BANKERS ARE DOING TERRIBLY. $200M EXTRA IS BEING CUT | 31 | 14h |
| +73 | Leaked Interview Questions to Recruiting Services | 39 | 4m |
| +59 | Are target prospects getting dumber? | 27 | 12h |
| +58 | How do YOU manage networking requests? | 17 | 19h |
| +37 | Quitting After First 4 months | 12 | 1d |
| +34 | MBB Pay Raises | 26 | 1d |
| +19 | Rothschild UK - Mining & Healthcare 2026 | 5 | 3d |
| +19 | Career Crossroads | 2 | 2d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
curious to know that as well...
Is the mining land an SPV, and if it is, are there any JV partners? Is that SPV Project Financed? Or is it simply a mine for one company?
If it is project financed it really depends on the cover ratios and how the company went about financing itself. If a lot of the debt is due towards the end of the project life, then there would be a very large impact on NAV, while if the main costs are put up front, and there is a lot of equity involved, there wouldn't be a large impact on NAV.
I'm not sure how to classify the land but the acquirer has bought the land 100% upfront and has no obligations to anyone, so it's just a mine for one company. The purchase was a mix of cash/stock and they keep 100% of the gold/silver that is mined.
Est omnis sit nesciunt quis neque est. Et modi placeat officiis nemo error ea incidunt. Repellendus corporis assumenda ratione culpa.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...