AI and Excel. Both tools are powerful in their own right.

The trick?

Knowing which to use and when.

In mining asset valuations, AI is starting to edge out Excel.

Why?

It’s all about real-time scenario analysis, swift data processing, predictive modeling, and seamless collaboration. These are areas where Excel simply can’t keep up.

Complex financial data analysis? Calculating EV of the corporation? — Choose AI.

Straightforward data tasks? — Better use Excel.

Valuing mining assets isn’t getting any easier. With commodity prices all over the place and ESG trends gaining momentum, things are only getting more complicated. Sure, asset values in the mining sector are expected to rise, but don’t be surprised by the volatility along the way.

This is where the right mix of AI and Excel becomes important.
Mining companies need to brace themselves for independent valuations. Commodity-price assumptions are a major driver of asset-price swings. Some companies are betting on spot prices, while others are banking on long-term forecasts. Which one’s right? Time will tell.

Then there’s ESG. It’s not just a buzzword anymore. Companies are increasingly factoring in ESG trends when valuing assets. Metals linked to clean energy are getting a lot of attention, as are traditional safe havens like gold. Some players in the market have been slow to adapt, but that’s changing as the focus on clean energy intensifies.

So, what about AI’s role in all this?

AI has already made waves in exploration and production. Valuation? It’s only a matter of time. The demand for real-time, reliable, and cost-effective data is pushing AI to the forefront. Imagine cutting costs, speeding up the valuation process, and gaining deeper insights into an asset’s worth—all with the help of AI. The future of asset valuation is looking more and more digital.

Mining companies can do a lot to help valuers.

1️⃣ Context matters. Understand why the valuation is happening. Is it for internal use or to share with the market? Who are the intended users of the valuation: domestic or international investors, banks, other mining companies?

2️⃣ Set realistic expectations with respect to value. There is a tendency to seek value aligned with inflated expectations. However, stakeholders might not see things the same way. Some balance is required. And using AI alongside Excel can provide a more grounded view of the asset’s true value.

3️⃣ Close collaboration with the valuers is key. The valuation of a mining asset is an iterative process. Break it down into steps. Figure out where you disagree on the technical and economic details. The aim is to close those gaps and get on the same page.

In the end, mining companies need a structured valuation process.

By combining the strengths of AI and Excel, companies can ensure they’re getting the most accurate, actionable valuations possible.