SME Valuation Standards & Tutorials

SME Standards and Guidelines for Valuation of Mineral Properties

In August 2017, SME published the SME Standards and Guidelines for Valuation of Mineral Properties (Including Petroleum), Second Edition, 2017 (SME Valuation Standards). The SME Valuation Standards have been adopted by SME. Under the SME Ethics Code, a Registered Member must comply with the SME Valuation Standards, when performing a mineral valuation. It is strongly recommended that other SME members also use and abide by these.

The publication in January 2016 of the First Edition was the first time SME had published a set of standards for the appraisal of the value of mineral property assets. The SME Valuation Standards have evolved from the SME Valuation Standards Committee’s participation since the outset, in a project begun in 2012 by the International Mineral Valuation Committee (IMVAL), to harmonize standards globally for mineral property valuations, including petroleum properties.

The content of the standards and guidelines in this 2017 edition has been updated to closely mirror the content of the International Mineral Property Valuation Standards Template, Second Edition (IMVAL Template), published July 2016. Also, quotes from, and references to, the International Valuation Standards (IVS), have been updated from the IVS 2013 edition to the 2017 edition.

Companies working in the minerals industry sector operate in one of the most internationalized sectors of the global economy. Large and small companies work around the world in the exploration, development and extraction of mineral resources. It is common for such companies to be listed on the stock exchanges of two or more countries, and to arrange multinational financing for their projects. To conduct such complex international business efficiently, uniform global valuation standards and definitions are necessary, that are based on internationally recognized classifications for mineral resources and reserves. This international environment is the reason for SME’s adoption of these comprehensive standards, specifically designed for appraisal of the value of the unique assets of the minerals industry sector, while employing globally accepted valuation principles. It is also the reason for the SME Valuation Standards Committee’s continuing participation in the ongoing IMVAL harmonization project.

Comments should be sent to:

Chairman, SME Valuation Standards Committee 
Society for Mining, Metallurgy & Exploration
12999 East Adams Aircraft Circle
Englewood, CO 80112