Metals & Mining

American Appraisal understands the competitive, geopolitical and economic factors affecting our clients. We have worked in the metals and mining industry on six continents, performing various engagements involving properties and issues such as:

• Coal mines in Mongolia
• The new Mineral Resources Rent Tax (MRRT) for Australian iron ore and coal mines
• Cash flow modeling for mines in Brazil
• Impairment issues in the steel industry

Who We Serve
Our metals and mining industry clients include operators of and investors in the following types of properties:

• Precious metal mines and refineries (gold, silver and platinum)
• Mines (iron ore, coal, copper, bauxite/alumina, lithium, magnesium, molybdenum, uranium, trona, gypsum, phosphates, nickel and mineral sands) and exploration properties
• Steel mills and integrated steel operations
• Cement and lime plants and related chemical-grade limestone reserves
• Metals processing, trading and distribution centers
• Aluminum smelters
• Construction aggregates mining, including sand, gravel and rock extraction and processing operations

What We Do
Our industry experience includes valuation of:

Our valuation and advisory services include the following:

• Financial reporting (US GAAP and IFRS)
• Impairment reviews
• Business interest and equity valuations
• Property tax valuation and negotiation
• Foreign Investment Real Property Tax Act (FIRPTA) analysis
• Income-tax-related valuation of shares and options issued as remuneration
• Restructuring and reorganization of business units
• Intellectual property restructuring and portfolio management
• Sale and leaseback
• Fair rental value analyses
• Fairness and solvency opinions
• M&A advisory
• Buy- and sell-side consulting
• Valuation and consulting related to IPOs
• Appraisal reviews
• Litigation support

We also assist our metals and mining clients with:

• Provision of insurable values for insurance placement and risk management, including annual updates
• Advice on management of post-loss claims
• Identification and valuation of surplus assets
• Valuations for asset-based financing
• Fixed asset inventory and reconciliation
• Guidance regarding SOX and IFRS compliance procedures
• Property tax studies
• Cost segregation analyses

Recent Experience
American Appraisal’s global metals and mining experience includes:

• Valuations of SouthGobi Energy Resources and Mongolian Mining Corporation for listings on the Hong Kong Stock Exchange
• Arch Coal’s acquisitions of International Coal Group for $3.4 billion, and Rio Tinto’s Jacobs Ranch mine
• Yanzhou Coal’s acquisition of Felix Resources in Australia - one of the largest outbound M&A transactions by a Chinese-state-owned enterprise
• Valuation for Anglo American Coal and Peabody Energy regarding the new Australian MRRT tax
• Severstal International’s acquisition of PBS Coals in the United States for IFRS financial reporting
• Valuation of a new cold mill operation for Severstal North America, Inc., for a collateral financing transaction with the U.S. Department of Energy
• Valuation of the real estate associated with two integrated steel mills in Indiana for property tax purposes
• Esmark’s acquisition of several steel service centers from Severstal in the United States
• Analysis of potential impairment issues for several US steel companies
• Valuation and componentization of several hundred processing and batch plants for CEMEX for IFRS 1 adoption purposes in North America and Europe

Why American Appraisal?
Our global metals and mining consultants annually perform valuations aggregating tens of billions of dollars. We excel at completing challenging projects – often in remote areas of the world – on time and within budget. We routinely speak at and participate in metals and mining industry events such as Mines & Money in Hong Kong, Beijing, Sydney and London; CRU Steel Conferences in Europe, North America and Asia; the MINEX Forum; and Adam Smith conferences. In addition, American Appraisal is represented on the Extractive Industries Committee of the International Valuation Standards Council.

Clients have direct access to appropriate American Appraisal consultants within the various metals and mining sectors.  Our senior staff includes qualified expert witnesses.

Our consultants at American Appraisal have diverse educational backgrounds (including engineering, real estate and finance) and diverse professional backgrounds. Consultants hold various professional designations (MAI, ASA, CMI, P.E. and MRICS) as well as state- and country-specific licenses and certifications, and undergo frequent continuing education courses involving real property, personal property and going concerns.