Modifying Factors must be estimated or confirmed by the Specialist(s), and a qualifying statement must be included in the Valuation Report about the confidence level of the technical and related parameters relative to a Feasibility Study or Pre-Feasibility Study confidence level. Where Measured, Indicated and Inferred Resources are used in the Income Approach model and/or where technical and related parameters are at a lower confidence level than a Pre-Feasibility Study level, the higher risk or uncertainty must be recognised by some means. This may include using a higher discount rate, reducing/discounting the quantum of the Resources or delaying the timing of production of the Resources in the Income Approach model, or some other appropriate means (as determined by the Securities Expert or Specialist) of reflecting the higher risk of including Resources. Any use of Inferred Resources in the Income Approach must be justified in the Valuation Report and treated appropriately for the substantially higher risk or uncertainty inherent in Inferred Resources compared to Measured and Indicated Resources. It is not acceptable to use Exploration Targets as outlined in the JORC Code in the Income Approach model, nor is it acceptable to include Contingent or Prospective Resources as defined in in an Income Approach model. Categories of mineral or petroleum that do not conform to the JORC Code or SPE-PRMS must not be used in the Income Approach model. For Petroleum Assets reportable under SPE-PRMS Code, it is generally acceptable to use all Proved and Probable Reserves. Range A of values (high/low) should be determined and stated in a Public Report to reflect any uncertainties in the data and the interaction of the various assumptions made; however, the range should not be so wide as to render the conclusion of the Public Report meaningless.
Modifying Factors must be estimated or confirmed by the Specialist(s), and a qualifying statement must be included in the Valuation Report about the confidence level of the technical and related parameters relative to a Feasibility Study or Pre-Feasibility Study confidence level. Where Measured, Indicated and Inferred Resources are used in the Income Approach model and/or where technical and related parameters are at a lower confidence level than a Pre-Feasibility Study level, the higher risk or uncertainty must be recognised by some means. This may include using a higher discount rate, reducing/discounting the quantum of the Resources or delaying the timing of production of the Resources in the Income Approach model, or some other appropriate means (as determined by the Securities Expert or Specialist) of reflecting the higher risk of including Resources. Any use of Inferred Resources in the Income Approach must be justified in the Valuation Report and treated appropriately for the substantially higher risk or uncertainty inherent in Inferred Resources compared to Measured and Indicated Resources. It is not acceptable to use Exploration Targets as outlined in the JORC Code in the Income Approach model, nor is it acceptable to include Contingent or Prospective Resources as defined in in an Income Approach model. Categories of mineral or petroleum that do not conform to the JORC Code or SPE-PRMS must not be used in the Income Approach model. For Petroleum Assets reportable under SPE-PRMS Code, it is generally acceptable to use all Proved and Probable Reserves. Range A of values (high/low) should be determined and stated in a Public Report to reflect any uncertainties in the data and the interaction of the various assumptions made; however, the range should not be so wide as to render the conclusion of the Public Report meaningless.
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