ISE Working method
We refer our metal prices from a few hundred individual sources to determine a representative average price for our customers. Our sources include large suppliers, traders, other information platforms and a large number of companies from mine operation to end customers. We determine the prices of highly specific metals using a simplified capital value orientation procedure.
Over the course of our ten years, a very extensive, organically grown network has formed. Secure our contacts with mine operators, traders, importers, exporters, refiners, manufacturing industry, banks, end customers and other price information services our customers a representative price average of their goods. Even for goods from very narrow markets, we have been able to record a few dozen indicators over the years.
Alle unsere Quellen haben unser Versprechen der absoluten Anonymität, damit keine Einmischung durch uns in den Markt stattfindet. Aufgrund unserer jahrelangen Erfahrung im internationalen Geschäft arbeiten wir grundsätzlich und ausnahmslos erst nach schriftlicher Auftragsbestätigung und einer vorab Bezahlung. Sie haben während der gesamten Bearbeitung Ihres Auftrags einen festen Ansprechpartner.
Value determinations and audits are usually confirmed by us in the course of a due diligence process of banks, auditors, lawyers or customers. This is always met with the utmost care, speed and simplicity.
The Institute of Rare Earths and Metals is the partner you can rely on 100%.
Principles and methodology for pricing
Value and price are often used as synonyms in everyday language, but economics distinguishes between them. Price is the exchange value, measured in monetary units, of a specific transaction between market participants. Value is an aggregated assessment made by a group of market participants or a decision value. Price is an objective variable observable in the market, whereas value is initially subjective and must be derived using a recognised valuation method.
The price and value of the product are different and usual, because “the price of one thing does not have to be equal to its value”. The element of the estimate plays a key role in this. A value is not a mathematically precisely measurable size. Thus, different reviewers will usually come to different results.
The market-oriented pricing is based on the prices of the competitors and on the behaviour of the demanders. It usually has the aim of maximizing profits.
IFRS 13 – Fair value principle
IFRS 13 defines fair value, represents the fair value assessment and explains the identity requirements.
IFRS 13 defines fair value as the price of a fair value in a regular transaction between market participants on the valuation date for the sale of an asset or would pay for the transfer of a liability. The assessment shall be subject to the transaction taking place on the priority market, i.e. the market with the largest volume and the largest number of market activities. for the asset. If such a is not present, the most advantageous market must be used for the measurement. This is understood as a market where, taking into account the transaction and transport costs, the selling price for an asset is maximised or the The amount of the transfer for a debt would be minimized.
The assessment is intended to be primarily directed at the observable market prices for identical assets and debts.
If this is not available, a three-stage assessment hierarchy shall be applied:
Level 1
are price quotations on active markets for identical metals to which the metal is listed on the date of measurement. The market price listing on an active market is the most reliable proof of fair value and is not subject to adjustments in the measurement of the where possible, with limited exceptions.
Level 2
are market price quotations other than those referred to in stage 1 which are either directly or indirectly observed for the metal.
Level 3
are non-observable input factors for the metal. A metal develops non-observable input factors using the information that can be best available in this circumstance, which may include product-specific data. All information on the assumptions made by market participants, which are reasonably available, shall be taken into account.
Methodological basis
For the assessment of metals, we have observed the generally accepted assessment principles. Since there is no generally valid special valuation methodology for the assessment of high purity metals in our specifications, we apply a value-oriented Evaluation methods based on researched market data.
We do not apply a cost-oriented procedure for lack of relevant information. This results, on the one hand, from the high degree of specification and from the lack of relevant information regarding cost structures. In addition, as already noted, the marketing perspective is primarily ahead of the procurement-oriented perspective for fair value.
The assessment procedures
In the case of market price-oriented valuation procedures, the price observable on an active market for the asset to be assessed or the debt shall be used. However, the use of common market prices requires an active market that meets the following conditions:
- the products traded on the market are homogeneous
- Contractual buyers and sellers can i.d.R. be found at any time
- prices are available to the public
In contrast to financial instruments or mass goods, these conditions are particularly applicable to highly specific metals due to their uniqueness and lack of precision. Availability of information i.d.R. not given.
In addition, traded goods are rarely comparable, so that adjustments must often be made to the specific characteristics of the goods to be assessed. The Commission shall take into account the following:
In our case, the market price-oriented procedure cannot be applied without restriction, as an active market is not present.
Capital-value-oriented procedure
The capital value-oriented method is based on the assumption that the fair value of the valuation object is measured at its ability to cash flow in future generate.
In this context, the planning and its premises are an essential part of the assessment and, where possible, should be made from publicly available information are derived or at least matched to these. This applies in particular to the accepted life and/or life The duration of the evaluation object.
The cash value of the in- and out-payments of the evaluation object is determined to determine the fair value. The discount rate applied for this purpose takes into account both the value of the money and the specific risk of the payments to be assessed.
The risk-adjusted capitalisation rate used in the regular risk-adjustment method shall be determined as a reference variable on a capital market to defer the derived return claim.
Our evaluations have made the capital-value-oriented process in a simplified form.
Cost-oriented procedure
The cost-oriented method determines the fair value of the relevant evaluation object by determining the necessary costs for the production or Procurement and commissioning of the asset.
In principle, reproduction costs or repurchasing costs can be used in this method. Reproduction costs include the costs necessary to produce an exact duplicate of the asset to be assessed, while the cost of repurchase the costs for the production of an equivalent asset. Where appropriate, it shall be examined to what extent the technical, physical and/or economic ageing measures are to be taken.
The historical acquisition or production costs may be a first value indication. However, it is to be assumed that repurchase costs – provided they are observable on the market – constitute the upper limit of value.
Cost-oriented procedures are usually applied only if neither the market price-oriented nor the capital-value-oriented procedure can be applied. In our assessments, the manufacturing costs for the fair value are not relevant, as the fair value as a hypothetical selling value is a The Commission has also adopted a proposal for a directive on the approximation of the laws of the Member States relating to the approximation of the laws of the Member States relating to the approximation of the laws of the Member States relating to the approximation of the laws of the Member States relating to the approximation of the laws of the Member States relating to the approximation of the laws of the Member States relating to the approximation of the laws of the Member States relating to the approximation of the laws of the Member States.