Analyse de rentabilité
Our client had invested in a Peruvian gold mine. Having developed the site and obtained the relevant authorisations to begin work, it was forcibly removed from the site by local authorities. The national government failed to resolve the blockade, and our client was unable to regain access to the site. Subsequently, shares of the gold mine were seized as part of foreclosure proceedings against a company that had provided a loan to our client. Our client brought a claim against the government for expropriation of its investment, seeking to recover the full value of the mine (c. USD 40m), through arbitration proceedings under the ICSID Convention.
We developed dynamic valuation models to assess damages based on a range of operational parameters. As part of our assessment, we conducted a critical review of existing valuation models and updated the assumptions to reflect new findings at various valuation dates. We also integrated the conclusions of mining experts regarding the production capabilities of the mine, and we assessed the available financing opportunities, evaluating their impact on the overall damages assessment.
We issued two expert reports assessing the value of the gold mining project on a fair market value (FMV) basis, applying various valuation approaches.