Drill and Deal

The course / Valuing a mine

Module 5 of 15, 15 minute read

Valuing a mine

A mine has a finite life. It is valued first by discounting its cash flows to depletion, then cross-checked against multiples.

The terraced walls of the Bingham Canyon copper pit under a hazy sky
Bingham Canyon, Utah, in 2019. Mined as an open pit since 1906, it has extended its life several times by cutting its walls further back, and each extension changed what the mine was worth.Photo: Farragutful, CC BY-SA 4.0

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