How do you value a mine or quarry in a way that holds up with banks, investors, and buyers?
In Episode 85 of the Mine EX-Plorers podcast, hosts Stuart and Crystal sit down with Daniel Boring, CRE®, MAI, ARA, ASA, Senior Vice President with Kidder Mathews Valuation Advisory Services, to discuss what makes a mining or construction materials project valuable and what it takes to support that value in an appraisal. The conversation covers cash flow, strategic value, valuing the whole operation, screening projects before investing, and how AI is changing appraisal work.
Daniel explains why an appraiser’s role is to provide an independent, supportable conclusion rather than simply agree with what an owner hopes a property is worth. He emphasizes understanding the business, the market, and how buyers and sellers actually evaluate a transaction, and building a case that can be supported to a bank, investor, or buyer.
Topics discussed in this video include
Cash Flow & the Independent Appraiser’s Role
Daniel describes cash flow as the common thread across mines, quarries, greenhouse operations, aquaculture, and waste facilities. He explains why an appraiser’s role is to deliver an independent conclusion that can be supported, which requires understanding the business and the market. Sometimes, he notes, it also means delivering unwelcome news.
Valuing a Mine or Quarry
How do geology and resource documentation connect with product quality, customer requirements, selling prices, production costs, and the time needed to bring material to market? The discussion focuses not just on what is in the ground, but on what can be extracted, what customers will buy, how quickly it can sell, and what evidence supports those assumptions.
Strategic Value vs. Standalone Economics
Why might a quarry look very different to a nearby ready-mix producer than to a standalone investor? Daniel discusses how transportation and regional growth affect opportunities, and why an exciting critical minerals story can be difficult to translate into a defensible valuation.
Valuing the Whole Operation
Daniel emphasizes looking at the whole operation, including the resource, equipment, workforce, power, water, and permits, not just the real estate. The discussion extends to private equity, infrastructure acquisitions, recycling as “above-ground mining,” and the importance of specialized expertise when valuing machinery and equipment.
Knowing When Not to Move a Project Forward
Why does a good appraisal sometimes mean a project needs to stop? Stuart explains how Burgex’s Preliminary Assessment of Site Suitability (PASS) reports help screen quarry opportunities before owners commit to more expensive investigation, and the group discusses why the most useful answer is sometimes that the evidence does not support moving forward.
AI in Appraisal
Daniel shares how he uses AI for research, writing, and appraisal review, while Stuart describes using it to reconstruct a financial model from an older report. Daniel compares AI to an orchestra: the tools can do impressive work, but they still need a conductor who understands the subject, recognizes mistakes, and takes responsibility for the conclusion.
Key Takeaways
- An appraiser’s role is to provide an independent, supportable conclusion, and cash flow is the common thread across mining, construction materials, and other specialized operations.
- Mine and quarry value depends on what can be extracted, what customers will buy, how quickly it can sell, and the evidence behind those assumptions.
- A quarry can hold very different value for a nearby strategic buyer than for a standalone investor, and critical minerals stories can be difficult to support in a valuation.
- Valuing the whole operation means considering the resource, equipment, workforce, power, water, and permits, not just the real estate.
- Early screening, such as a PASS report, can show whether a quarry project justifies further investment or needs to stop.
- AI is a useful tool for research, writing, and review, but it still needs an experienced professional to guide it and stand behind the conclusion.
This discussion is relevant for mine owners, quarry operators, mineral explorers, and anyone preparing a mining or construction materials property for financing or a sale.
About Daniel Boring
Daniel Boring, CRE®, MAI, ARA, ASA is a Senior Vice President with Kidder Mathews Valuation Advisory Services and a senior member of the firm’s Land, Agribusiness & Natural Resources group. He brings more than 30 years of experience and licenses in 12 states. His work spans real estate, machinery and equipment, and specialized businesses, from mines and quarries to large greenhouse operations, aquaculture, and waste facilities.
Learn more about Daniel Boring and Kidder Mathews Valuation Advisory Services.
Watch the original Mine EX-Plorers episode on YouTube.
About This Interview
This conversation originally appeared as Episode 85 of the Mine EX-Plorers podcast, hosted by Stuart and Crystal. Reposted by Kidder Mathews with permission.