Value of the Coal Mine Pljevlja was overestimated at the end of 2017 by at least one-third of the real value, i.e. by around €12 million. The following text primarily confirms that the difference between the estimated value of the appraiser and the value that would have been obtained using the same assessment method, however, based not on data submitted by the purchaser, but on the accounting data from the last few years, is exactly the amount of around € 12 million. Second, almost identical difference is obtained when we compare the estimated value with data on the market value of the shares of the Coal Mine Pljevlja. Finally, third, most powerful arguments to back up the assertion are obtained when we examine the reality of certain assumptions used by the appraiser and apply alternative, more realistic assumptions about the movement of certain variables and values of certain figures.
Thus, in all three cases, the overestimation is around one-third in favour of the estimated value. It is likely that the overestimation of the Coal Mine is even larger, but such finding would require additional data that was not available at the time of preparation of this case study. Thus, although we do not provide an assessment of the value of the Coal Mine, we can show that the value of the Coal Mine is overestimated by around €12 million. Therefore, below are explained calculations on overestimating in relation to certain items for which documentation was available.
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