Equipment appraisal for extractive industries—whether dredging, mining, drilling or recycling—demands an understanding of the extractive process and the specific equipment used in the varied industries. Thorough inspections, excellent data, and attention to maintenance records are an important part of the appraisal process, along with knowledge of current market conditions.
Considering Market Conditions
Understanding how major economic trends influence the value of specific drilling or mining equipment and being able to communicate these trends in a clear manner is a key part of our valuation process. For instance, in a valuation for a scrap metal recycling plant, we discussed how the ongoing trend of industrial buyers increasingly turning to the recycled metal market was affecting current equipment values in the recycling industry.
Obsolescence: Physical, Functional, Economic
One interesting aspect of mining, drilling and recycling is how evolving technology has influenced traditional techniques: more energy-efficient equipment and expanded worker safety regulations continue to drive mining and drilling equipment sales and thereby equipment values. The same thing is true in the burgeoning recycling industry. In cases where equipment technology changes dramatically, it’s especially important to consider functional obsolescence.
Physical deterioration must also be carefully considered. Since equipment in this industry often experiences hard use in harsh environments, it’s important to calculate the Normal Useful Life accordingly. Attention to equipment maintenance records is a significant part of this process.
Economic obsolescence, which is influenced by external factors, such as governmental regulations, or availability of labor or materials, is also an important factor in the extractive industries. For example, a recent update to the California Geological Survey (CGS) to the “Aggregate Sustainability in California” project projected that four major regions in California–San Diego, Sacramento, Fresno and the San Fernando Valley–were likely to deplete their permitted aggregate supply within the next decade—something to consider when valuing aggregate mining equipment.
Unbiased Independent Valuations
Unlike many heavy equipment appraisers, we don’t run an equipment auction or have any financial interest in the equipment we value. You can feel confident that the appraisal valuation we provide for your mining, drilling, dredging and recycling equipment will be unbiased, well researched and effectively presented.
Our machinery and equipment appraisal reports are the work of an Accredited Senior Appraiser (ASA) in Machinery & Technical Specialties, the designation awarded by the American Society of Appraisers to educated, experienced and qualified individuals in the specialized equipment appraisal industry.
Call us at 530.795.5536 for a free consultation regarding your mining, drilling, dredging and aggregate equipment appraisal needs.
We appraise all extractive industry equipment: mining equipment & machinery as well as well-drilling and aggregate equipment — and related equipment — including:
- Bin Vibrators
- Blast Hole Drills
- CEC
- Crushers
- Continuous Miners
- Conveyors of All Kinds
- Cummins
- Detectors
- Douglass
- Draglines
- Dredges
- Drills
- Drum Separators
- Duplex Plants
- Eriez
- Excavators
- Feeders
- Generators
- GreyStone
- Hitachi
- Hoover
- Hoppers
- Longwall Miners
- MB
- Radial Stackers
- Recycling Equipment
- Reverse Flow Drills
- Rock Dusters
- Roof Blotters
- Rotary Drills
- Sampling Systems
- Sand Equipment
- Scrapers
- Screeners
- Separaters
- Shuttle Cars & Scoops
- Spreaders
- Stackers
- Stephens-Adamson
- Sullivan
- Take-Ups
- Trio
- Universal Engineering
- Washers
- Wet Concentrators