Royalty Negotiations and Studies

Property owners and mining companies need to understand the current fair market value of their assets when negotiating potential transactions. This valuation can be performed by an independent fee appraiser who typically makes a determination of what the market will bear. Appraisers often overlook other factors, such as costs for site development and transportation, because standard appraisal procedures do not address them. Mineral royalties are different (Determining accurate mineral royalties requires in the mining industry, not just knowledge with property appraisals).

EnvrioMINE analyzes necessary factors to determine a range of fair market values of mineral royalties for negotiation purposes. EnvrioMINE's knowledge of local aggregate market conditions and resource availability allow us to effectively negotiate royalty agreements with aggregate production companies. Our efforts involve assessment of current market conditions, survey of royalty rates on a local, regional, and statewide basis, and development of pricing trends to determine current and future value of aggregate resources.

Depending on the financial expectations of the client, EnvrioMINE can recommend maximum rates of royalties to be paid, purchase price of royalty points, and report comparable examples. EnvrioMINE can also provide educational materials on behalf of the mining company to the property owner explaining the reasoning and fairness of royalty rates being negotiated. Following establishment of agreements, EnvrioMINE will then monitor the operations to insure full payment of royalties to the holder of mineral rights.