Loss of Value Assessment Due to Government Expropriation in the Mining Sector


The Claimant was a publicly traded junior mining company that owned a development stage gold mine in a foreign jurisdiction. The Claimant alleged that its mining concessions were wrongfully terminated by the government of that jurisdiction.

Our Role

Secretariat professionals were engaged by the Claimant to quantify the economic damages it allegedly sustained in connection with its ICSID claim against the government that terminated its mining concessions.


We prepared a valuation of the gold mine using the discounted cash flow method, based on a robust financial model that incorporated the forecasted revenues, costs and technical aspects of the mine, as well as the economics of the gold market at the valuation date. In addition, we considered various market-based valuation methods to test the reasonability of our conclusions under our primary valuation approach.

We also filed a report in connection with the jurisdictional hearing, whereby we analyzed the date at which the Claimant’s investment in the gold mine became substantially worthless, based on our detailed review and analysis of financial data and public disclosures. The Claimant was ultimately successful at its jurisdiction hearing.

We testified on valuation and economic damages issues at a hearing held at the World Bank in Washington, D.C.

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