Quarries and Gravel Pits

Because rock and stone are valuable, these sites are definitely not “the Pits” when it comes to income properties. Whether you are an owner, lessee, operator or lender, we can appraise this highly unusual property for you.

Our Experience

Appraisal of (rock) quarries, gravel pits and similar properties requires specialized valuation techniques and assimilation of technical data. First timers should not take a shot at these.

At ZENGEL and Associates, we have conducted enough valuations of these properties to master the method and understand the technical aspects -- we know what to look for and what questions to ask. Valuing these normally involves coordinating the geologist’s reported total aggregate reserve with the client’s regulated or contracted maximum extraction plan to determine an estimated reserve depletion schedule, reversion value, and market royalty.

Our Clients
We typically serve owners / lessees / operators, mining and extraction companies, construction companies, and lenders seeking verification of value for collateralization purposes. If your property needs an appraisal, contact us and mine our experience to value your site in these circumstances:

• Purchase and Sale
• Leasehold Valuation
• Lease vs. Buy Analysis
• Verification of Recurring Royalty and Land Reversion Interest

Sample Engagements

• For an SF Bay Area bank financing a leased fee interest, we valued a 2600 acre mixed-use ranch in Northern California with farmland, grazing land, orchards and an aggregate mine, along with structural improvements:

Valuation in excess of $22 million.

• A materials company asked us to value a 3-parcel river bottom site currently in agricultural use for potential use as a sand and gravel quarry:

Valuation $4.6 million.

• For acquisition negotiations, a materials company engaged us to value several hundred acres of a river bluff for potential use as an aggregate mine:

Valuation $4.4 million.

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