- Title
- Market valuation of junior natural resources companies
- Creator
- Iddon, Casey
- Date
- 2015
- Type
- Text; Thesis; PhD
- Identifier
- http://researchonline.federation.edu.au/vital/access/HandleResolver/1959.17/96742
- Identifier
- vital:10154
- Identifier
- http://library.federation.edu.au/record=b2679986
- Abstract
- Junior mining companies provide a vital feedstock to the mining sector, which in turn, feeds into the wider economy via manufacturing. The valuation models traditionally used in other sectors of the economy appear to be insufficient, in terms of scope and capacity to handle uncertainty, to provide a rational pricing of junior mining companies. The observation that junior mining firms are valued by some means suggests that either the junior mining markets are inefficient or, more likely, that these markets are able to provide insight, scope, and capacity to the methods of firm valuation. The process by which natural resource companies are valued on equity markets is poorly understood, especially for those companies at an early stage-of-development focussed upon exploration and the development of embryonic natural resources. Thus, the primary research question motivating this research is: How does the market value junior natural resource companies? While a number of studies have contributed to our understanding of market valuation within the junior natural resources sector, the extant research is often siloed in a focus on traditional value-relevant factors that neglects other factors that potentially have even greater value-relevance. A key contribution of this research is to identify, define and subsume potential value-relevant factors into a conceptual framework of junior mining firm valuation. Another key contribution of this research is its empirical analysis of the relevance of accounting information in 2,324 junior mining companies and an empirical event study into 1,526 seasoned equity offerings by junior mining companies. The findings support the value-relevance of commodity prices and reveal that natural resource companies tend to undertake seasoned equity offerings following persistent market outperformance. This research, by conjoining the extant literature with empirical analysis in a mixed methods approach, provides an integrated account of market valuation within the junior natural resource sector.; Doctor of Philosophy
- Publisher
- Federation University Australia
- Rights
- This metadata is freely available under a CCO license
- Subject
- Mineral industries; Mines and mineral resources; Open Access
- Full Text
- Thesis Supervisor
- Hettihewa, Samanthala
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