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By D. Lessard, S. Nantel

"Surface crown pillars are important Canadian,mining structures. Mines operating in the Canadian Shield usually have several, forming a first line of protection from surface elements.Detailed technical information from twenty-four Canadian hard rock mines show that the deposits dip steeply and are generally either single or multiple veins. Considerable overburden usually cap the deposits. The rock mass is often altered and intersected by important discontinuities.The designs for these types of pillars lack basic data and are based on experience rather than a scientific approach. Regardless of the competence of the rock mass, the surface crown-pillar thickness to width ratios (an unscientific design tool used by the industry) are usually less than five. Rock bolting is, in almost every case, used as a support measure. However, there are many openings neither backfilled nor monitored.The characteristics of openings with surface crown pillars are also examined."

Jan 1, 1988

By Jean-Luc Collins

"The paper deals with the impact of fleet imbalance on a deterministic evaluation of shovel fleet productive capacity. It shows that if the fleet imbalance is overlooked, then estimated fleet productive capacity will be overrated.The paper shows that fleet imbalance inflates utilization, and care must be taken when using such statistics which are derived from reported field-equipment-hours. It shows that the utilization must be deflated by a factor called 'balancing efficiency"" in order to estimate shovel productive capacity correctly. The paper also shows how fleet imbalance can be controlled by managing idle time or downtime in an actual operation.The technique used for measuring the balancing efficiency factor is based on statistical analysis of equipment utilization."

Jan 1, 1980

By Ian Rozier

"Emphasis in recent years in western Canada has been placed on the development of large open-pit coal mines, the most notable developments being in northeast British Columbia. However, vast resources exist below the limit of economic open-pit mining, and with world demand predictions of the late seventies in mind, the potential of underground coal mining in western Canada has been investigated. Particular emphasis has been placed on the Plains coalfield of Alberta, and there is optimism that underground coal mines will be developed in the Lethbridge area of southern Alberta.With no existing operations in southern Alberta with which to compare mining conditions, any mine planning and feasibility level studies rely heavily on the engineering/geotechnical data obtained from surface investigation to predict ground control problems and technical constraints on mining. Such investigations have been integrated with exploration drilling programs. Emphasis has been placed on extracting maximum information to provide an over-all appreciation of potential ground conditions and to identify specific ground control problems that could be encountered.The acquired geotechnical parameters are then used to evaluate the mine properties from an engineering standpoint for input into the determination of optimum mine layouts, development directions, mining methods and roadway and face support requirements. These geotechnical studies have been primarily directed toward the longwall mining method, but the acquired data base could equally be applied to alternative mining methods.In addition to the lithologic and structural controls which relate to roof stability, caving characteristics, floor heave and subsidence, investigations have been directed at gaining an understanding of the over-all surface and ground water regime with respect to potential inflow into the mine openings and ground control problems that could be caused by inflows encountered during mining. Experience has shown that soft floor conditions and water control are important factors to be considered in a longwall layout, and without doubt these parameters will play a major role in the design and operation of a successful longwall operation in the Lethbridge coalfield."

Jan 1, 1986

By J. Lu, D. B. Dreisinger, G. Houlachi

"Zinc metal is primarily produced by electrowinning from sulfate solution. Zinc electrowinning is very sensitive to impurities such as Co and Ni. These impurities have to be removed to produce high-quality zinc and maintain a high zinc current efficiency. Zinc dusts are used to remove these impurities by cementation. However cobalt cementation is extremely slow and it is typically activated by the addition of Cu and Sb. Even with the use of Cu-Sb activation, cobalt is still difficult to remove. The zinc dust used for cobalt cementation is negligible compared to that consumed for hydrogen evolution. In some plants up to 6-7% of electrolytic zinc is used for cementation. This is a great waste of energy. Cu-Sb activation is not well understood. The objective of this study was to further understand the Cu-Sb activation and then find a way to reduce hydrogen evolution and promote cobalt cementation. The investigation reveals how hydrogen evolution (or zinc dissolution) and cobalt cementation and re-dissolution change with temperature, zinc dust dosage, the concentrations of copper and antimony and time. In the Cu-Sb activation, copper is deposited on a zinc particle to produce a porous shell. The zinc particle as an anode dissolves while the shell as a cathode provides a place where cobalt cementation and hydrogen evolution occur and they are catalyzed by antimony. A certain level of antimony (around 0.1 mg/L) is a key to maintain the catalytic effect of the shell. At a higher antimony concentration, cobalt cementation is accelerated slightly while hydrogen evolution is increased greatly. When a zinc particle dissolves to a certain degree, cobalt loses its cathodic protection and starts to re-dissolve. The change in cobalt concentration is determined by the rates of cobalt cementation and re-dissolution. The operation conditions can be optimized to maximize the cobalt removal and minimize the zinc dust dosage.INTRODUCTIONMost of the world’s zinc metal is produced by electrowinning from sulfate media. Many impurities such as iron, copper, cobalt and nickel are co-extracted into solution with zinc. Iron, mercury, indium, lead and tin are removed by co-precipitation as hydroxides. Copper, nickel, cobalt, aluminum, arsenic and germanium are partially co-precipitated with iron while cadmium, magnesium and chloride remain in solution. Cobalt, copper, cadmium, nickel and etc. are subsequently removed by cementation with zinc dust to achieve an acceptable current efficiency and high purity metal product for the economical production of zinc. Zinc provides a strong thermodynamic driving force for the cobalt cementation:"

Jan 1, 2016

By P. R. A. Andrews

"A sample of flotation feed from Bakertalc Inc., High water, Quebec was subjected to flotation evaluation to improve the recovery of talc. A number of alternative frother/collectors and depressants as well as flotation parameters including pH, conditioning time, frother/collector concentration and pulp density were assessed. In addition, the possibility of using a size coarser than that currently employed for flotation (95% minus 50 um) was investigated.As far as possible, a laboratory duplication of the present circuit arrangement was folio wed so as to minimize the cost of any changes. The best results obtained were a concentrate analyzing 95.96% acid insol for a recovery of 65.98% after four stages of cleaning. With recirculation of cleaner tailings, the recovery would be higher.The possibility of using an alternative method, based on the natural ability of talc to float unaided by a frother/collector, was briefly explored with encouraging results.IntroductionBakertalc lnc ., located in the eastern townships at Highwater, Quebec, Is approximately 140 km east of Montreal near the Vermont, U.S. border. Originally called Baker Mining and Milling Co. Ltd., it has produced pulverized talc products since 1938(1 ), although records show that talc was mined in the area as early as 1871(2). Feed to the mill originally was obtained from local deposits, but since 1952 the van Reet mine near south Bolton, approximately 25 km from Highwater, has been the source of ore .In 1957 a Raymond high -side roller mill was installed which enabled production of a greater range of talc products and, in 1960, new crushing equipment and a dryer were added. Other additions to the mill were the introduction of wet magnetic separation, although this was later discontinued, and flotation to produce high-grade talc concentrates."

Jan 1, 1985

By A. A. Lavrinenko, N. I. Gluhova, L. M. Sarkisova, D. V. Makarov

"The investigated sulfide Cu-Ni ores are characterized by low PGE contents and emulgated impregnations of pentlandite and palladium minerals in the main ore-forming mineral pyrrhotite, which hinders their selective separation, requiring a collective flotation of sulfides to concentrate, and hydrometallurgical processing. As revealed by studies of floatability of Pt-Cu-Ni ore in a mixture of butyl xanthate and chelating phosphorus containing reagents, the most effective additive is Aerophine 3416 (a phosphinates mixture) manufactured by Cytec. Using collective flotation with a butyl xanthate – Aerophine 3416 composite in the ratio of 1:3 has afforded to enhance the Pt, Pd, and Ni recovery by 13.6 %, 9.2 %, and 9.4 %, respectively. The optimal ratios of Aerophine 3416 to butyl collector for the collective flotation are the following: 1:1 for Pt and Pd and 3:1 for Ni. The effect of these reagents on the electrode potential and surface hydrophobicity of pyrrhotite, pentlandite, and platinum black has been investigated. The extraction UV spectrophotometry experiments demonstrate that DIBDTPI exists on the pyrrhotite surface mainly in the form of disulfide in weak acid medium and in the form of compounds with Fe on the mineral surface in minute amounts. There appears some disulfide and few amount of (DIBDTPI)2Ni on the surface after interaction of DIBDTPI and pentlanditeINTRODUCTIONXanthates are widely used in flotation of copper-nickel ores containing platinum group metals (PGM) as sulfides collectors which can concentrate the most part of PGM connected with the sulfides. Though xanthates are hardly efficient for flotation of free PGM, the latter are floated more slowly compared to the sulfides of base metals. The reasons for poor floatation of free (mineral) forms of PGM are under-researched, however the key accepted reasons are: fine disseminations of free PGM, insufficient interaction with xanthate and negative influence of blue copperas and sulfur-containing ions which are sulfides oxidation products (Penberthy et al. 1999; Shackleton et al., 2007). That’s why an additional collector, normally dialkyldithiophosphates, is used during flotation of PGM-containing copper-nickel ores. A reagent DP-4 is used for recovery of PGM at Norilsk mining and metallurgical plant. The reagent represents a slightly-soluble organic calcium sulfonate which is given to flotation pulp in the form of water emulsion of 5% - solution in automotive diesel oil."

Jan 1, 2016

By M. E. Sirkka

"INTRODUCTIONInco Ltd. has ten operating mines in the Sudbury district. Over the last ten years mining methods have changed at Inco with special emphasis on the introduction of bulk mining replacing conventional mechanized cut-and-f ill and undercut-and-fill methods. At the same time, the technology and size of LH D equipment has also progressed to meet the demands of bulk mining. This paper will concentrate on various aspects of the introduction and operation of electric LHD equipment a t Inco Limited, Ontario Division. BackgroundInco Limited received its first electric 2 cu. yd capacity LHD in July 1975 at Creighton Mine. The unit was tested pulling shrinkage stope muck and then was moved to a mechanized cut and- fill complex on 6600 Level. The electric scooptram received quick acceptance from the operators, due to its quiet operation and low heat generation, in a relatively hot operating environment. Although there are only two of these units operating a t present, this initial favourable experience, both in cost and efficiency, led to the development and purchase of electric scooptrams of the 5 cu. yd size. There are currently eleven 5 cu . yd electric LHDs in operation.The most recent development a t Inco is the move to yet larger electric LHDs in the 8 cu. yd size. The first electric ""Eight"" has now been in operation at Copper Cliff South Mine for over a year. This unit has the distinction of being the first one of its kind in service in North America. At the time of writing, there were ten 8 cu. yd electric ma chines operating in Inco's Ontario Division Mines, with three on order."

Jan 1, 1989

By H. K. Fredrickson

"Midwest Joint Venture (MJV) owns a high-grade uranium deposit in northern Saskatchewan. The deposit is located too deep below surface to be mined economically by open pit methods, and as a consequence, present plans are that it will be mined by underground methods. High-grade uranium ore of the type at MJV, encased in weak, highly altered ground and with radon-rich water inflows, has not before been mined by underground methods.The test mining phase of the project, completed in 1989, had three objectives: 1. to evaluate radiation protection requirements associated with the handling of large quantities of radon-rich water and mining highgrade uranium ore in an underground environment; 2. to investigate the quantity and quality of water inflows into the mine; and 3. to investigate ground conditions in and around the ore zone as an aid in determining the production mining method to be used.With information gained from the test mining project, a mining method for the production mine has been devised. Level plans have been drawn up, ventilation system designed, pumping arrangements made and methods of ore handling considered. All this is to be done in a manner that will be safe for those doing the work underground. Some of the mining methods planned are felt to be unique in that they are designed to cope with mining problems not known to have been encountered before. New problems underground have required new methods to handle them. Remote drilling, blasting, mucking and backfilling form the basis of the planned mining method."

Jan 1, 1992

By K. Adham, T. Buchholz

"Significant capacity increases to meet new production demands can often be fulfilled through debottlenecking of an existing production facility, rather than the more expensive option of building new plants and facing new environmental and infrastructure challenges. To achieve that goal, it is important to model and calculate the existing ultimate capacity of each processing plant area, and that of each key equipment sector within the plant areas. This paper describes a methodology of how process modeling tools can be used to simulate the processing steps, how to estimate their existing and ultimate capacities, and how to determine the sweet-spots (minimum cost points) for a plant expansion – leading to a road map of the subsequent debottlenecking project implementation.The debottlenecking technique is presented through a generic work-flow narrative which can be applied to different mineral processing studies, starting with establishment of heat-and-mass balances, drawing a bottleneck diagram, brainstorming capacity increase options, and preparing a cost-capacity curve. Hatch has successfully applied this technique to a number of plant capacity studies, with great benefits to our industrial clients.INTRODUCTIONWith the softening of the metals and minerals prices, and the escalated costs of building new processing plants, it is now economically more viable to improve and debottleneck the existing facilities, rather than build new ones. However, spending new money on old plants requires careful considerations, in order to identify the most economically advantageous incremental steps of improvement and the best potential returns on investment. Process modeling, hand in hand with plant measurements, can identify the best scenarios to balance the three aspects of plant capacity (nameplate, utilization and yield), both at the global and the individual system and subsystem levels."

Jan 1, 2016

By G. Vibert Douglas

NICKEL minerals are known in New Brunswick but have never been reported from Nova Scotia. The attention of the writers was drawn to an occurrence of pyrrhotite, reported to carry nickel, at the Second Gold brook, Middle river, Cape Breton. The purpose of this paper is to record the occurrence and give an account of the general geological association. In a later paper it may be possible to give greater details? than are available at present. GEOLOGY The area lies at the edge of a plateau of Precambrian rocks which forms the panhandle of Cape Breton island. This plateau has a general elevation of 1,200 feet. Middle river, with its tributaries, the First, Second, and Third Gold brooks drains the area. The lower country to east and southeast of the plateau is underlain by lower Carboniferous sediments. The rocks of the plateau are presumably of Precambrian age but have never been definitely correlated with the Gold-Bearing Series of the mainland. ?There i:s; however, some resemblance, although they have apparently been more intensely mountain-built. They are essentially fine grained, sheared quartzites and slates . The general strike is east and west, with a north dip of 45° to 55°. There are smalllocal drag-folds in the area. The only igneous rock in the immediate vicinity is an intrusive pink porphyry. It has small phenocrysts of quartz and feldspar. It has intruded the sediments generally along the structural planes, but in places crosses the structure . Its intrusive character is further proved by the fact that it contains xenoliths of the quartzite.

Jan 1, 1937

By G. Grant Smith

In situ bulk density of coal is a variable applied to various aspects of coal resource evaluation, such as compositing ply analyses of coal attributes that are expressed on a weight per cent basis, and determining tonnages from volume estimates. Its value is a function of composition and porosity of the in situ material. When densities of ash-free coal, ash and water are fixed, in situ bulk density of a coaly mix can be expressed as a function of proportionate weight of ash in the mix. Correlations between in situ bulk densities and weight per cent ash contents of coaly mixes have been estimated for four general rank classes of coal (low medium volatile bituminous, high volatile bituminous, subbituminous, and lignitic).

Jan 1, 1991

By Douglas G. Jay

"Transfer points on belt conveyors have long been a source of problems for both designers and users. Conveyors are generally given a low priority in new equipment layout, thus designers are often forced to compromise due to space limitations. Consequently, for this reason as well as for reasons of initial economics, many conveyors are supplied with less than adequate transfer points.Although not intended as a cure-all, a number of existing installations have been modified with the result that spillage has been reduced to a minimum and belt life has been extended. The most striking modification consisted of replacing conventional rigid frame idlers with five-roll catenary idlers.Although catenary idlers can be traced back to the early 1900s in North America, with a patent having been issued in Washington, D.C. as early as May 29, 1907, the practical application of this concept has only recently reached North America. Major installations include applications at St. Lawrence Cement in Oakville and Iron Ore Company of Canada in Sept-Iles, as well as belt conveyors at Stelco's Nanticoke plant and yard conveyors at Syncrude in Alberta. These installations were part of major capital expenditures for new facilities and included complete conveyor systems.However, this article will discuss the use of catenary idlers on existing rigid frame conveyors for the purpose of absorbing the energy of falling lumps, protecting conveyor belts and reducing spillage. We will deal specifically with an installation at Inco Metals Company in Sudbury, Ontario, where approximately 40 five-roll catenary idlers were installed on a 42-in.-wide belt conveyor handling ore located under the railroad car dumper at the Clarabelle Mill. Before-and-after photographs clearly show the tremendous improvement in the cleanliness of the location, and the savings in maintenance costs and extended belt life have prompted Inco to consider modifying other conveyors."

Jan 1, 1982

By M. Normandin

The performance of various polymers and other macromolecules used to flocculate red mud particulate materials in the Bayer process can be evaluated on the basis of their efficiency to achieve adequate settling velocity and turbidity level, The Jar Test is widely used in the mineral industry to determine the efficiency of solid-liquid separation processes, particularly for gravity settler of the Bayer process. However, a high level of variability is found in the data obtained by this methodology, In this study, different parameters of the cylinder test procedure are evaluated to determine their role in the overall variability of the method, As demonstrated by laboratory testing, the overall variability can be considerably reduced by good laboratory practices.

Jan 1, 2005

By O. Hyvärinen

Outokumpu has developed a new chloride leaching process called HydroCopper®. In this process copper sulfide concentrates are leached at atmospheric pressure in concentrated sodium chloride solution using cupric ions as the oxidant. Copper is recovered from the purified leach solution by precipitating cuprous oxide, which is then reduced to pure copper and further melted and cast directly into copper products. The key reactants: sodium hydroxide, hydrogen and chlorine are generated from the spent sodium chloride using chlor-alkali technology. An important feature in the HydroCopperTM process is that the gold contained in copper concentrates is leached as chloride complexes and recovered from solution by activated carbon. Conditions for the leaching of gold-bearing pyrite can also be achieved in the chloride system by optimizing the redox conditions. This paper deals with the basic factors affecting gold leaching from copper sulfide concentrates. Opportunities for the recovery of refractory gold associated with arsenopyrite and pyrite will also be discussed.

Jan 1, 2005

By L. Lamothe, C. H. The

"Pilot precipitator tests were conducted at Noranda's Horne Smelter in late 1978 to evaluate methods of improving converter dust collection efficiency. A bout 35 Nms/min. of converter off-gas were isokineticatly diverted from the converter flue to the pilot precipitator leased from Flakt (Canada) Ltd., consisting of three fields, one transformer-rectifier set per field and 77-m2 total collecting plate area. The effects of gas volume flow rate and conditioning the gas with sulphur trioxide and/or additional moisture were tested. II was found that gas flow rate and moisture level had the most pronounced effect on collection efficiency. Based on a techno-economic assessment of different options for improving converter Courell efficiency, waffle hoods and water sprays were installed on the converters to reduce air infiltration and increase the moisture level in the gas.BackgroundThe Horne Smelter of Noranda Inc. is situated in northwestern Quebec and, since the closure o f the min e in 1976, has been operating as a custom smelter. The concentrates treated at the smelter come from various mines with mixed sulphide ores , many o f them containing significant amounts of lead and zinc which makes dust collection in electrostatic precipitators mo re difficult than normal.As part of a continuing program on reducing smelter dust emissions, the No . 6 Cottrell was installed in 1972 up stream of Nos. 2 and 4 Cottrells (in parallel) in a n attempt to improve dust collection by increasing the over- all precipitator capacity ( Fig. I). However, it has never per formed a t its designed efficiency o f 94%. The average efficiency established in various test s was in the range of 60 – 65%."

Jan 1, 1985

By B. Das

"Computers have been used extensively in the mineral industry in exploration, reserves calculation, mining technology, mineral processing, etc. With respect to coal mining, there are also various applications for evaluating rock slope stability of open pits, design of open pits, underground operations, mine ventilation, ground control, data processing and management information, operations control and certain technological applications. Mine ventilation appears to be the field in underground coal mining touched on most; on the other hand, underground coal mining methods evaluation is represented only sparingly.It is therefore essential to review the status of the computer in underground coal mining methods evaluation in order to define its scope for further application. The paper discusses the roles of the mining engineer, programmer, computer operator and analyst as well as that of the computer. The important parameters will be identified and discussed along with their application for different underground coal mining methods, with their individual unit processes. Mainly, longwall face operations have been covered. Although many models have been of academic interest, they can be considered as important steps in a transition stage which will be followed by more practical applications for computers for underground coal mining method evaluations in the future. This calls for a coordinated effort from all concerned."

Jan 1, 1981

By Louis Tellier

SIDBEC commenced detailed planning of major capital expenditures to install integrated steelmaking facilities in 1969. Today, less than IO years later, SIDBEC and its subsidiaries have completed major mining, concentrating, pelletizing, direct reduction ? electric furnace steelmaking and continuous casting plants. The total cost of these projects was almost 1 billion dollars. The philosophy behind the project planning and the evolution of management control are explained. These extensive projects were undertaken during a period of exceptional inflation and a disturbed labour climate, but were nevertheless completed with only modest overruns, with good control of timetables and with exceptionally good start-up performance. Project planning, relations with consulting engineers, introduction of new technology, purchasing and field management and cost control are discussed.

Jan 1, 1979

By G. R. Guillet

"Bricks made from local Paleozoic shales, and floor and wall tiles made from imported clays, both established record production volumes in 1985 and are the strongest segments of Ontario 's clay products industries. However, renewed interest in traditional materials also supports a good market for clay flower pots and flu e liners, and innovative processing studies are showing promise for possible new production of clay roofing tiles. This paper reviews the highlights of a comprehensive study of Ontario's clay products industries, completed in 1986. IntroductionFor some years now, Ontario' s clay products industries have been unspectacular in their attempt to cope with the recent recession and the impact of alternative materials. But a strong demand for bricks in recent years has done much to dispel the gloom.Bricks, drainage tiles, sewer pipes, flue liners, structural and partition tiles, and flower pots have been commonly referred to as ""heavy"" clay products, and they have been based largely on local clays and shales. To this list might be added expanded aggregate and mineral wool. Clay refractories, sanitary ware, electrical porcelain , art pottery, and floor and wall tiles are not considered heavy clay products, and are commonly made from a variety of ceramic materials, many of which are imported.Production facilities for heavy clay products often began in Ontario as small family enterprises, using whatever clay was available locally to supply the local market with building bricks and other clay products needed for construction. Improved road systems increased the market range for these plant s, and new technology and industry standards resulted in gradual"

Jan 1, 1988

By D. G. Champion

"A comparison of diesel engine power ratings with in-service capability, and the selection of unit size and total number of units are discussed in the paper. Engine specific fuel consumption and its evaluation in relation to manufacturers' tolerances and equipment load factors is reviewed along with the suitable plant layout. The potential for heat recovery is discussed in connection with simple and operable recovery systems f or exhaust and cooling circuits. Maintenance standards as related to improved reliability and reduced fuel and operating costs are also outlined. IntroductionDiesel generators are used in Canadian mining operations to provide electrical power for "" base- load"" requirements in some instances and for ""stand-by"" or ""emergency"" power in almost every producing mine in the country . There are over 300 mines in Canada of which only a handful have to generate their own electricity. Only one or two mine s enjoy access to a hydroelectric site. Consequently, the diesel engine is the principal prime mover because of its high efficiency relative to other prime movers in the size range in question.The author has been associated with several “base-load” plants in addition to participation in numerous projects requiring emergency diesel generators. Records indicate that engine performance in term s of reliability and efficiency lags behind other industries where the diesel engine is used more extensively, such as the shipping industry which is able to make a more prudent selection of original equipment and enjoy easy access to highly skilled operating and maintenance personnel. It is hoped that the contents of this paper will be of value to Canadian operators of diesel generators, in the generation of prime power or applications for back-up power."

Jan 1, 1986

By John Smith

"The RTZ Corporation PLCFrom a company's point-of-view, a good investment decision is one which results in the purchase of an asset that is worth more than it costs. Thus, in order to judge the merit of an investment opportunity, it is necessary to estimate the value of the assets to be acquired.Discounted cash flow (DCF) analysis has become widely adopted by companies in assessing potential new investments. The principle is a simple one: invest in projects which have a positive net present value, and reject those which do not. However, perhaps because of its apparent simplicity, DCF analysis is frequently misused. Good practice in the use of the technique is discussed, together with several common misconceptions.Sound analysis requires sound data; thus, the valuation process relies heavily upon a wide range of specialists to provide the basic input from which cash flow forecasts can be built up. The analyst must maintain close liaison with these specialists from the outset in order to ensure that the data provided is indeed relevant and complete.IntroductionBefore turning to the main subject of this paper ""How Companies Value Properties"", it is of interest to consider first a slightly different question ""Why do Companies value Properties""? In other words, for what purposes are such valuations prepared? Certainly the commonest, and probably the most important circumstance in which a valuation is required is when the company is considering an investment opportunity. This may be the direct purchase of a property or group of properties from a third party, but could also be the opportunity to develop a new operation or expand an existing one.A very simple objective in making any kind of investment is to make our shareholders richer than they would otherwise have been. That is, to make investments whose value to shareholders exceeds the consideration required to acquire them. Thus the investment decision focusses on the difference between an asset's value and its cost.This distinction between ""value"" and ""cost"" is an important one. Study of a company's balance sheet may tell a lot about the cost of this company's assets, but very little about their value. Then again, it is sometimes argued that a business should be bought because this will result in assets being acquired for less than their replacement cost. This merely compares one cost with another, it says nothing about value."

Jan 1, 1991