Valuation of the Economic Value of a Decentralized Mining Company

  • Kacper GRZYWNOWICZ Eng.; AGH University of Krakow, Faculty of Civil Engineering and Resource Management, Krakow, Poland
  • Arkadiusz KUSTRA Assoc. Prof. PhD. D.Sc. Eng.; AGH University of Krakow, Faculty of Civil Engineering and Resource Management https://orcid.org/0000-0001-8416-4405
  • Romuald OGRODNIK PhD. D.Sc. Eng.; AGH University of Krakow, Faculty of Civil Engineering and Resource Management
DOI: https://doi.org/10.29227/IM-2023-01-26
Keywords: mining, decentralized company, economic value, discounted casf flows DCF, economic value added EVA, sum of the parts SOTP

Abstract

In this paper, a literature survey was conducted in the field of enterprise value. A division of values by methods of their calculation was presented, distinguishing adjusted assets, market and economic methods. Methods of estimating economic value were described with details, distinguishing methods based on future cash flows DCF and EVA, which is based on invested capital. The article is supplemented by the SOTP methodology, which, despite its wide application thanks to the division of valuation into individual business segments, giving detailed information on value generation. The paper concludes with the conducted valuation of the economic value of a decentralized mining company. It showed that the DCF and EVA methods are the same and also demonstrated the usefulness of the SOTP method in multi-segment enterprises as a valuation tool.

Published
2023-08-20
How to Cite
GRZYWNOWICZ, K., KUSTRA, A., & OGRODNIK, R. (2023). Valuation of the Economic Value of a Decentralized Mining Company. Test, 1(1 (51), 203–212. https://doi.org/10.29227/IM-2023-01-26
Issue
Vol 1 No 1 (51) (2023): Inżynieria Mineralna
Section
ARTICLES

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