Here is an article from FANews the author of which was Gavin Commins of The Valuator.  For the original article, please follow the link to FANews.

The value of employing asset specialists

The valuations industry in South Africa has in recent years become a fully-fledged, professional service to rival its counterparts throughout the world.  In an environment based entirely on credibility, where valuers are dealing with the heart and soul of individuals’ and companies’ wealth, it is vital that confidence is upheld and that the valuer or valuation company is capable of providing the appropriate expertise for the work required.

Gavin Commins, CEO of  The Valuator Group, an accredited, multi-faceted, boutique valuation company operating throughout Africa, the Indian Ocean Islands and the UAE, says there is a common misconception that if valuers are qualified they are adept at valuing just about anything.  “Quite the contrary,” he states. “It is this trusting attitude that can get clients into serious trouble when it comes to claiming for a loss or damages, only to find that their asset or most precious possession is inadequately or incorrectly valued.”  This is not to discount the credibility of valuers who are more than qualified and experienced in a given field which is sufficient for one specific need, but a valuator that works for the bank and focuses on residential valuations would not, for instance, be the appropriate person to assist in the assessment of a shopping centre or game farm.  

Clients need to do their homework and ensure that their valuator or valuation company is not only qualified, but is registered with the correct bodies like SACPVP (South African Council for Property Valuations Profession), SAIV (South African Institute of Valuers), or, even better, internationally accredited with RICS (Royal Institution of Chartered Surveyors).  The company should also provide valuers who have knowledge and experience in carrying out valuations for specific assets, e.g.  jewellery, art, machinery, antiques, aeroplanes, classic cars, restaurant equipment, etc.  Adds Commins, “It’s important to marry the valuer to the required field.

Commins says that there are only a handful of valuation companies that offer the full spectrum of asset valuations and that it is a good idea to research and employ those that do, so that you have peace of mind in knowing your assets are adequately and properly evaluated (Fair Value) for property insurance and market purposes. 


We follow that up with a similar article from Cover 

Inaccurate valuations can be costly

The resources industry worldwide has been hit by a drop in demand for related products. The effects of the loss in listed shares in the mining industry over the last two years are noticeable in the workshops and machinery yards of some of the biggest mines in South Africa. Although there is talk about pockets of growth in certain sectors, some forward-thinking groups have taken stock of their strategies and in many cases sold off many of their non-core assets.

Gavin Commins, Group CEO of The Valuator Group, says that they have been inundated over the last few months with enquiries from mining companies who are literally taking stock and valuing their key assets for market and insurance purposes and ultimately for a correct reflection on their balance sheets.

The dangers of inaccurate valuations can be far-reaching, and none more serious than in the mining industry. Commins explains: “Not only is there a need for accurate valuations for balance sheet and funding purposes, but insurers have become rigorous with insurance claims.” According to Commins, mining valuations are specialised and much more complex and therefore should be far more comprehensive than regular valuations, as seen in the iron ore mine flood disaster in Bento Rodrigues, Brazil where the companies are suffering financially due to insurance claim issues. Companies need to be sure that their replacement costs are correct, should any claim be questioned by an insurer.

For this to be achieved, valuators need specific skills and expertise in building, blasting and excavating structures, plant, machinery and all technical mining assets. For peace of mind, many mining-related companies are opting for cost effective options offered by valuation companies over specified terms. “We are finding it interesting how the relationship with our clients in this sector has developed. There have been a few cases of late that have negatively affected companies financially, which has resulted in executives taking heed. In this economic climate, it seems that clients prefer to have peace of mind, knowing that their assets are correctly valued,” reports Commins.