Balfour Holdings has electronic databases that monitor all publicly announced transactions that involve mineral deposits, operating mines and mineral corporations. More than 40 attributes for each deal are compiled. A few of them include asset name, commodity(s), type of transaction, buyer's and seller's names, and nationalities and company types. They also include the business relationship between the parties, the size and type of land position, asset location, transaction date, currencies used and the attributable interests acquired. In addition, these databases include tonnages, metal grades, contained metals, recovery rates, recoverable and attributable metals acquired, operation and processing methods, projected/actual capital and operating costs, transaction terms (cash, stock, work, royalties, other obligations), value of transaction, work completed, environmental issues and comment fields. Each transaction is referenced as to the source of the information used. These categories are used to identify peer transactions. Over time, these categories have been fund by the author to capture all of the key value drivers. For each transaction, an acquisition cost is calculated (Equation 1). This cost includes the aggregate value of all financial obligations that are required to become vested in the asset. These terms commonly fall into one or more of the following categories: cash, stock, work, royalties and other obligations.
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