| Course Unit Code | 545-0188/01 |
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| Number of ECTS Credits Allocated | 5 ECTS credits |
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| Type of Course Unit * | Compulsory |
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| Level of Course Unit * | Second Cycle |
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| Year of Study * | Second Year |
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| Semester when the Course Unit is delivered | Winter Semester |
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| Mode of Delivery | Face-to-face |
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| Language of Instruction | Czech |
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| Prerequisites and Co-Requisites | Course succeeds to compulsory courses of previous semester |
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| Name of Lecturer(s) | Personal ID | Name |
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| WEL01 | Dr. Ing. Petr Welser |
| ROL74 | Ing. Markéta Laštůvková, Ph.D. |
| BOR200 | Ing. Petr Bora, Ph.D. |
| Summary |
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| The course is focused on the processes of valuation of mineral deposits. Students will gradually get acquainted with the relevant legislation and the basic structure of the process of valuing reserved and non-reserved deposits in the Czech Republic. Relevant valuation methods, including methods of determining the discount rate, are explained to students. An integral part of the course are also case studies in which the student acquires the methodology of valuation of real estate and movable property, the existence of which is an infrastructural condition for the implementation of opening, mining and processing processes in a mining company. All knowledge used in teaching respects the applicable mining legislation, legislation for property valuation and is based on current best practice |
| Learning Outcomes of the Course Unit |
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| The student will be able to explain the process and methodology of valuation of mineral deposits. The student will be able to apply the valuation methodology to a given deposit of minerals. The student is able to quantify the discount rate in relation to risks. The student understands the expert opinion and is able to interpret its conclusions. |
| Course Contents |
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1. Fundamentals of mining and geological legislation
2. The complete production cycle in mining and its operational and investment financing
3. Legislative framework of property valuation in the Czech Republic
4. Valuation of property in the mining industry, valuation principles
5. Basic terminology in the valuation of deposits and mining companies
6. System concept of valued deposit and mining company
7. International Valuation Standards IVSC 2000
8. Methodology of valuation of deposit and property of mining company
9. Principles of determining the value of a mining company
10. Yield methods, calculation of free cash flow - FCFE method
11. Approaches to determining the discount rate and capitalization rate for real estate
12. Analytical relations for determining the value of deposit reserves
13. Syllabus of expert opinion on the valuation of the deposit and the value of the mining company's property, case study of mining company valuation - list of initial documents |
| Recommended or Required Reading |
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| Required Reading: |
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BORA, Petr, Michal Vaněk a Kateřina Špakovská. RISK PREMIUM AND COST OF CAPITAL: APPLICATION IN MINING INDUSTRY. Košice: Technická univerzita v Košiciach, 2015, 76 s. ISBN 978-80-553-2261-2.
KOLLER, T., GOEDHART, M., WESSELS, D. Valuation: Measuring and Managing the Value of Companies. 7th edition. John Wiley & Sons, 2020. ISBN: 978-1-1196-1088-5.
SINHA, Naresh Kumar a N. L. SHARMA. Mineral economics. Fourth edition. New Delhi: OxBULLOCK, Richard L. a Scott MERNITZ, ed. Mineral property evaluation: handbook for feasibility studies and due diligence. Englewood, Colorado: Society for Mining, Metallurgy & Exploration, [2018]. ISBN 978-0-87335-445-5.ford & IBH Publishing Co. Pvt. Lld., [1988]. ISBN 81-204-0331-2. |
KARPÍŠEK J. (2000): Oceňování báňských podniků a ložisek nerostů. - MS VŠE Praha, 66 s., 5 příloh.
BRADÁČ, Albert. Teorie a praxe oceňování nemovitých věcí. Brno: Akademické nakladatelství CERM, s.r.o. Brno, 2016. ISBN 978-80-7204-930-1.
Zákon č. 151/1997 Sb. Zákon o oceňování majetku a o změně některých zákonů (zákon o oceňování majetku)
BORA, Petr, Michal Vaněk a Kateřina Špakovská. RISK PREMIUM AND COST OF CAPITAL: APPLICATION IN MINING INDUSTRY. Košice: Technická univerzita v Košiciach, 2015, 76 s. ISBN 978-80-553-2261-2. |
| Recommended Reading: |
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BLACKLEDGE, M. Introducing Property Valuation. 2nd Edition, Routledge, 2016. ISBN: 978-1-1389-2995-1.
VENTOLO, W. L., WILLIAMS, R. M. Fundamentals of Real Estate. Appraisal 13th Edition. Dearborn Trade Pub, 2018. ISBN: 978-1-4754-6380-4.
The JORC Code 2012 Edition.
Pan-European Code for Reporting of Exploration Results, Mineral Resources and Reserves (PERC). |
BRADÁČ, Albert, Vlasta SCHOLZOVÁ a Pavel KREJČÍŘ. Úřední oceňování majetku 2017: zákon č. 151/1997 Sb., o oceňování majetku, vyhláška č. 441/2013 Sb. k provedení zákona o oceňování majetku (oceňovací vyhláška) : související předpisy: tabelární přehled postupů ocenění věcí nemovitých: oceňování věcí movitých: účinnost od 1. ledna 2017. Brno: Akademické nakladatelství CERM, 2016. ISBN 978-80-7204-950-9.
MAKOVEC, J. Oceňování strojů a výrobních zařízení. 2. vyd. Praha: VŠE, Nakladatelství Oeconomia, 2010. ISBN 978-80-245-1737-7
Zákon č. 254/2019 Sb. Zákon o znalcích, znaleckých kancelářích a znaleckých ústavech
VENTOLO, W. L., WILLIAMS, R. M. Fundamentals of Real Estate. Appraisal 13th Edition. Dearborn Trade Pub, 2018. ISBN: 978-1-4754-6380-4. |
| Planned learning activities and teaching methods |
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| Lectures, Tutorials, Project work, Teaching by an expert (lecture or tutorial) |
| Assesment methods and criteria |
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| Task Title | Task Type | Maximum Number of Points
(Act. for Subtasks) | Minimum Number of Points for Task Passing |
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| Credit and Examination | Credit and Examination | 100 (100) | 51 |
| Credit | Credit | 30 | 17 |
| Examination | Examination | 70 | 34 |