Andy Clay and Godknows Njowa talk about the operations of Venmyn Deloitte.
Venmyn Deloitte was established in November 2012, when Deloitte purchased 25-year-old mineral advisory firm Venmyn and incorporated it into Deloitte South Africa’s Mineral Advisory Services practice. Can you elaborate on the company’s role in the African mining industry?
AC: The purpose of Venmyn’s merge with Deloitte is twofold. Firstly, through Deloitte we now have a base in almost every country and are truly global. Secondly, we have access to a vast selection of specialized skills that we can call upon as Deloitte has 250,000 employees worldwide and can do business practically anywhere, mainly for the securities exchanges and transaction orientated projects. We specialize financial valuation, technical evaluation and projects requiring technical expertise. Venmyn Deloitte helps companies to understand the value of their assets relative to the market price. Companies have to value their assets relative to impairment calculations and Venmyn Deloitte helps them do that within the context of IFRS standards and the mineral asset valuation codes. A mineral asset is much more than the ore in the ground. It is also the ability to license and to mine it and the ability to raise finance. The accounting definition of an asset is a resource that is in control of an enterprise and from which future economic benefits will flow. The problem is that by the legal interpretation of control and the accounting interpretation means 51%. Godknows and myself also sit on the new International Minerals Valuation Committee that is coordinating a new common mineral asset valuation template.
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