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By E. J. Wade

My subject is gold price forecasting and monitoring as an important aspect of gold marketing. While I 'm specifically addressing gold, it is understandable that many other commodities could be readily substituted. Gold marketing must be studied as three distinct processes, and it is my intention to cover each of these processes in turn. First I?ll cover the process of gold price monitoring and forecasting in some detail. In order to select a method, or combination of methods, to be used to sell gold a determination of the future price profile is essential. The profitability of the sales effort will be determined, to a large extent, by how accurately the future price behavior of the gold market has been forecast.

Jan 1, 1985

"Option pricing is used in finance for valuing options to buy (or sell) shares at some future date because it provides a convenient framework for quantifying values subject to uncertainty. As one of the main sources of uncertainty in mining is the price (sales) of the metal, this approach can also be used for valuing mining projects.The first part of this paper reviews options and option pricing; the second part presents the approach developed by Brennan and Schwartz (1985) for using option pricing to value natural resources. Several applications of this methodology have been published; these are described. From a mining point of view, the assumptions made by Brennan and Schwartz are too simplistic. The weaknesses are discussed with a view to improving an apparently promising new way of assessing the value of projects. IntroductionThe collapse of the British merchant banking group, Barings, has highlighted the risks that can be incurred by speculators and arbitragers in the futures and options markets. But this negative attention on futures and options should not make us forget their positive aspects. They can provide producers and consumers of metals with more predictable sales prices. The introduction of the new traded average price options, TAPOS, by the London Metal Exchange in January 1997 is a response to this need. Equally important, the theory that the finance industry has developed for valuing options provides an interesting framework for valuing mineral projects as well. While this paper was being revised, the South African gold mining house, JCI, announced that it was using a methodology based on option pricing for valuing the mineral rights to deeplevel gold resources (see Box 1)."

Jan 1, 1997

By John D. Galloway

Mining is one of the important primary industries of Canada, with a gross production in 1927 estimated at $241,773,000- the highest in the history of the country-and an impressive dividend record. It is quite apparent, therefore, that mining is a business worthy of the careful attention of the people of Canada. Furthermore, with a vast undeveloped territory more or less mineralized, it is highly probable that our mining industry will continue to expand indefinitely, with a consequent increase in production and in the amounts of the yearly profits distributed. In recent years, the public has taken a larger interest than formerly in mining-an interest, moreover, that is not academic, but primarily from the viewpoint of profits. It is quite evident that mining is a profitable business, at least to some, and the average man on the street, hearing of these profits, is attracted thereto. I have no doubt that many of you have .read in promotion prospectuses, with figures to prove it, that mining is the most conservative, the safest, and the highest-yielding business in the world. Now, a lot of this information is best judged by the old saying that "While figures don't lie, liars figure". At the same time, mining, properly conducted, is a profitable business, even though speculative, and undoubtedly much profit will come from Canadian mines in the future. In this paper my conclusions regarding mining investments are based largely on British Columbia experience, together with some slight knowledge of mining conditions in the other Provinces. It is considered, however, that the inferences drawn are applicable to mining throughout Canada.

Jan 1, 1928

By H. Foster Bain

(San Francisco Meeting, October, 1911.) [SECRETARY'S NOTE.-This paper, presented in oral abstract, at the San Francisco meeting, was not at first supposed by Mr. Bain to be required for publication in the Transactions; and the excursion to Japan, in which he took part, immediately after the San Francisco meeting, delayed his presentation of the manuscript. After his return to San Francisco, Mr. Bain, in view of the importance of his paper and its discussion, kindly furnished it in full. The delay in its publication (since it was received in April last) has been due, partly to the circumstance that other contributions had meanwhile acquired the "right of way," and partly to the consideration that, the situation contemplated in Mr. Bain's paper having remained practically unchanged, the paper and its discussion would not lose force or timeliness by this lapse of time.-J. S.] No acute observer of public affairs can have failed to observe a growing disposition on the part of the public to change emphasis in government from political equality to social justice. When our own government was founded it was felt to be sufficient to secure to each individual the fullest possible freedom of opportunity, and such a scheme was excellently adapted to the rapid development of a large territory having a small population. As the number of people in a given area increases, there are more points of contact and conflict; each must move in a smaller orbit, and there must be more regulation. Germany is making faster progress in industry than is any other country. The principal reason is the insistence there on team-play. In Germany there are fewer multimillionaires and more socialists (spelled with either a big or little " S ") than in any other of the leading countries; but Germany wins trade and is steadily improving the conditions of life for her citizens. To some, the change from the freest individualism is welcome; to others it is intensely unacceptable. To this fundamental difference in view-point may be imputed much of the vigor with which the controversy regarding coal-lands has been waged. That present conditions in Alaskan coal-fields are extremely unsatisfactory is generally recognized, but there are wide dif-

Aug 1, 1912

By S Matos Camacho, K G. van den Boogaart, R Tolosana Delgado, U Mueller

"The precise formulation of a geometallurgical optimisation problem is by necessity a simplification of reality. It includes implicit choices such as data availability or mining block geometry. Additional data can be orebody data, production data or market data. Often these choices are predetermined by the software, the workflow or the corporate culture, and as such are not even queried. There are several aspects that might play a role in the optimisation. They include not only the spatial model on which the selection of mining blocks and the potential mining sequence are based, but also the complexity of the processing model, the way in which uncertainty is treated, the scope of responsibility and the complexity of the model. In addition the timing of the optimisation and the availability (or lack thereof) of information will influence the outcome of any optimisation.We show that different modelling choices and different model formulations for the same mine can lead to very different processing choices, substantially different net present values (NPV), opposite investment decisions and so to overall different values for the entire operation. The selection of adequate simplifications and corresponding formulations for the optimisation problem is thus an important task in itself.For this purpose we introduce a method for quantifying the impact of certain simplifications prior to the optimisation. For example, the effect of mining block choices depends mainly on the spatial structure and the structure of the processing gain function. Both can be quantified beforehand. Based on the outcome, appropriate simplifications can be selected for the geometallurgical optimisation.CITATION:van den Boogaart, K G, Tolosana Delgado, R, Mueller, U and Matos Camacho, S, 2016. How Details of the Geometallurgical Optimisation Influence Overall Value, in Proceedings The Third AusIMM International Geometallurgy Conference (GeoMet) 2016, pp 303–312 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Jun 15, 2016

By Michael Rieber

Mineral economics interfaces the mineral sciences and engineering with finance and economics in the analysis of appropriate questions facing the minerals and energy industries. Its practitioners include those trained in the earth sciences; mining, petroleum, and geological engineering; metallurgy and mineral preparation; as well as finance, information systems, economics, and statistics-most usefully in one or more combinations. Allowing for some overlap, three general areas may be identified: evaluation, economic analysis, and resource appraisal. Evaluation begins with mine investment analysis (exemplified by Gentry and O'Neil, 1984) and process costing, for which the STRAMM Handbook (Anon., 1977) provides a well-known basis for mining and beneficiation. But it extends from property appraisal, often used for the determination of taxes and royalties, through the determination and comparison of transport costs (e.g., Richer and Soo, 1977), and to benefit/cost analyses of externalities. Economic analysis, the subject of this section, is displayed in rigor and extent both theoretically and as applied to commodity classes in Vogely (1985), but it is implicit though apparent throughout Lefond (1983). The text edited by Vogely places minerals in their aggregative context with economic growth and trade, proceeds to the theoretical analysis of minerals and their markets, analyzes the structure and performance of the major mineral sectors, and concludes with policy issues: fuel, nonfuel, and environmental. Resource appraisal employs quantitative methods for the estimation of mineral and energy resources. It moves through geologic, geophysical, and geochemical properties to the identification of estimation procedures for mineral endowment and for the economic measure of stocks and flows of specific minerals (Harris, 1984). It can be used to estimate the probable amount of a specific resource remaining in a given region and has been used to project sites in a specific

Jan 1, 2008

By J. Mackintosh Bell

External trade strongly influences the well being of all nations. In the modern economic mechanism, no country is so well endowed that it has not to import commodities from others and to export its products in turn to make good its deficiencies, to rectify or improve its financial structure. From the standpoint of international commerce, Canada is strategically well placed. On the south she is bounded by the richest country in the world. On the east she faces the Atlantic, on the west the Pacific. On both coasts there are fine harbours to which lead great lines of railway that span the continent. Canada is now fifth among the exporting nations of the world. For disposal abroad, she has enormous quantities of primary commodities and substantial amounts of manufactured goods as well. But she is far from being self-sustaining. She is unusually dependent on foreign trade, not only because of the commodities she has to sell but because of the lack of many essential articles she does not or cannot produce. To Canada, external commerce is vastly more important than internal trade. The wealth of nations is decided by their ability to produce more than they need, to sell more than they buy, and to build up favourable balances resulting from trade or services. With few countries, however, are returns perennially satisfactory. Fruitful periods are followed by leaner years. In times of prosperity foreign credits are increased, monetary systems strengthened, reserves accumulated to withstand recurring days of strain. Today, the foundations of financial systems are being re-examined, "dogmas hitherto accepted as canonical are being questioned" . It is not only in Europe and America that men search for illumination in problems arising from monetary restrictions.

Jan 1, 1933

By Karl J. C. Harries

"12.1. NO DEPRECIATION/GAAPAll calculations and computations relating to the Royalty shall be carried out in accordance with generally accepted accounting principles consistently applied to the extent that such principles are not inconsistent with the provisions of this Schedule and the agreement attached hereto, it being specifically agreed that nothing herein contained shall permit, or be construed to permit, the Operator to deduct any amount for depletion, depreciation, amortization or any deduction that represents a non-cash outlay.Comment: In cases like net profit royalties where recoupment of prior expenditures is permitted, care should be taken to avoid any implication that depreciation may also be taken. It is only logical and equitable that Property Owners should not be permitted an apparent ability to “double dip” with respect to deductions. A provision like this example should accomplish the task. It will be noted that the example specifically contemplates that the negotiated arrangements will prevail over any requirements of GAAP. Accordingly, if the parties agree to an unusual formula for recoupment, it will not be set aside to accommodate GAAP requirements. Under GAAP, revenues and expenditures are accounted for on an accrual basis. In addition, it specifically prohibits the taking of non-cash deductions, which is in keeping with the concept of recoupment.Although in some ways the example states the obvious and could be considered redundant, its presence, especially in provisions contemplating recoupment, makes it clear to the financial people that there may well be some variations from normal practices dictated by GAAP, while at the same time confirming the availability of GAAP to fill any voids.The accounting profession often makes the caveat that application of GAAP is an “art”, not a “science”. GAAP do not provide a cure-all and can create problems that will have to be addressed. For example, GAAP contemplate that asset costs are to be reduced by investment tax credits, which can cause a problem for a payor with more than one mine."

Jan 1, 2003

By Y. Gordon

ABSTRACT A methodology based on a two-stage approach was developed for process technology selection. The first stage includes evaluation of available technologies, followed by shortlisting the best technologies based on mass and energy balance modelling, financial analysis, and risk analysis. The second stage involves detailed analysis using refined input data, mass and energy balance modelling, and capital and operating cost estimation, as well as a more detailed financial analysis. A case study covering the selection of ironmaking technologies for a company in the Russian Federation is presented to illustrate the critical elements of the methodology and the analysis process.

Jan 1, 2014

By Duluth Engineers' Club, Engineers' Club of Northern Minnesota

"Iron ore in Minnesota probably carries a heavier tax burden than any mineral in any other place in the world. The State Tax Commission, created in 1907, originated the system, and with the assistance of the School of Mines is constantly making such adjustments, changes and increases as appear necessary, in order to place mineral reserves on the assessment rolls at their true and full present taxable value. The ore bodies on the Mesabi are so well defined by drilling and underground devel¬opment that it is possible to estimate very exactly the volume on every forty acres of land taken as a unit. This is done by the operating or holding company and reported annually to the Tax Commission, Who check the estimates, having all data, and- proceed to fix the valuation for taxation purposes.The first step is to ascertain a general average selling price in open market, over a period of years ; then the total cost per ton (exclusive of royalty) to produce and market the ore. The difference between the average selling price and producing cost per ton is taken as the future full value per ton. This is then discounted at a rate of interest that represents the present and possible future worth of money, over a period of years that will be required to exhaust the ore body, giving the present full value per ton., Iron ore is taxed at 50 per cent of its full value, while other property is taxed at 33 1/3 per cent and 25 per cent."

Jan 1, 1920

By G. V. Campbell, O. T. Holdsworth, M. G. Nelson

A senior design project is required by all accredited mining engineering degree programs. Often referred to as the capstone of a student’s education, this project is expected to include all the important components of the preliminary economic assessment of a mineral prospect, including orebody modeling, grade and reserve estimation, selection of mining and processing methods, preliminary mine design, access and utilities, environmental compliance and reclamation, and financial analysis. Two of the authors (Campbell and Holdsworth) completed a senior project in 2021. They analyzed the Akie zinc deposit located in Canada. This paper summarizes the economic analysis portion of that project. The two primary objectives of this economic analysis were risk reduction and integration of economics and engineering. Addressing risk is important as risk is one of the primary concerns in mining investments. Risk reduction was the primary concern through the entirety of this economic analysis. Integration of financial analysis and engineering design was the first component of a risk reduction design. This allowed for financial and engineering design to be optimized in conjunction with one another. This produced benefits from both a financial and an engineering prospective. From a market, economic, and financial risk perspective, risk was reduced by forecasting multiple metal price scenarios, and then addressing the Akie project’s economic viability at each price point. Lastly, risk was address through consideration of nontraditional financing options. The project also sought to minimize financial and human capital risk, by proposing mutually beneficial cooperative social relationships and favorable work, schedules. Description of that work is not included in this paper.

Mar 2, 2022

By Parry. V. F.

"SUMMARY This report reviews the status of the packaged-for industry as of 1941. A field study was made of 35 representative plants to obtain technics and economic data on different types of processes used to make packaged fuel in the Central States. The report includes a classification of processes, photographs of typical operations, designs of different plants, an analysis of costs of manufacture, and a study of the physical and chemical properties of fuel cubes.It was observed that many of the smaller plants were having troubles in the manufacture of packaged fuel as the price of materials and costs of labor advanced toward the higher levels of 1942. In some instances, the total cost of manufacture was as high as $5.00 per ton, while in the better, medium-sized plants it was approximately $3.25 per ton. The direct manufacturing costs, excluding investment and depreciation, ranged from $3.17 to $2.37. These costs permit almost no profit at small plants when packaged fuel sells for the same price as competing lump coal under conditions existing in 1941-42.It was found that the predominant troubles in plants were due to inadequate drying and insufficient mixing of the starch binder. It was ob¬served that in the better plants, where proper mixing of binder was attained high-quality packages were made if 50 to 70 percent of the moisture was removed in the drying ovens. Experimental data obtained in the laboratory show the relationship between the temperature of dry air and the time required to remove different percentages of moisture in wrapped orunwrapped coal cubes.The average physical and chemical properties of fuel cubes made by five processes are listed, and tentative standards for minimum physical qualities and methods for measuring quantity are giver."

Jun 1, 1944

By Charles Camsell

At the Annual General Meeting of the Institute in 1924. I endeavoured to present the position held by the mineral industries in the commercial life of this country. The facts and figures were presented at that time in a detached way. Since then, however, I have made some attempt to analyze them in order to determine the causes for that position and to draw some conclusions as to the future of the mining industry. As everyone knows, our trade figures are very often used in political discussion, especially in discussion of tariff policy. It would be entirely out of order for me to say anything touching the tariff issue and I want to have it clearly understood that, in my opinion, the material I am about to present contains not a single statement or conclusion which anyone would be warranted in using as an argument for either a lower or a higher tariff or for tariff changes of any kind. As a starting point, let me re-state, very sketchily, Canada's general situation in external trade. In the last calendar year, 1924, we sold Canadian merchandise of all kinds to other countries to the value of $1,045,000,000 in round figures. Our purchases abroad reached about $893,000,000. Thus our sales exceeded our purchases by roughly $152,000,000. In other words, we had what is known as a 'favourable balance of trade' - one of the biggest favourable balances we have ever had in our history. The proceeds of our sales of Canadian products enabled us to meet the bills for all our purchases of foreign commodities and, in addition, placed a large surplus to our credit with which to offset our interest charges and other obligations abroad.

Jan 1, 1925

By R. W. Bruhn

The objective of the study is to examine the apparent influence of soil and near surface rock strata on the severity of damage experienced by surface structures subjected to mine subsidence. The report discusses: 1) modes of ground movement that might complicate or be confused with mine subsidence; 2) prevailing concepts concerning mine subsidence in the Northern Appalachian Coal Field and Illinois Basin; 3) apparent influences of soil and near surface rock strata on the character of subsidence-related ground movements; 4) classifications and criteria for characterizing damage due to ground movements; and 5) types of subsidence damage experienced by homes above active mines in western Pennsylvania. Presented is a damage classification system incorporating a severity index for characterizing subsidence damage to homes with basements above active mines. A series of case histories illustrate subsidence damage to structures above active and abandoned mines.

Jan 1, 1983

By Keith L. Harris

Recent data indicate a marginal decline in overall growth in world economic output from 3.1% in 1985 to 2.9% in 1986 (table 1),2, 3 Many nations experienced slower economic growth because of the huge trade imbalances existing between the United [ ] States and Japan and the Federal Republic of Germany, the U.S. budget deficit, and the growing Third World debt. Some developing nations, however, experienced booming growth. Declining prices for energy and nonenergy commodities and the fall of the dollar against the currencies of major industrial countries benefited several developing countries--energy importers and exporters of manufactured goods with currencies tied to the U.S. dollar, which were able to expand markets in the industrialized nations. The drop in commodity prices increased demand in industrial countries and depressed it in developing countries. Lower demand in the developing countries contributed to a decline in the real net exports from industrial countries. As a result, output growth in industrial countries declined from 3.0% in 1985 to 2.4% in 1986, despite growing internal demand, Average output growth of developing countries increased from 3.296 to 3.596 during the same period, however, primarily because of the low prices of their products and the strength of demand in industrial countries for those products. Developed country output growth was extremely uneven, however. For example, the economic output of nonfuel exporters grew 5.4% in 1986, while that of fuel exporters dropped 0.7%.

Jan 1, 1987

By Carroll C. Bailey, William F. Boericke

Mine financing, or providing adequate capital for developing and bringing a mining property into production, is an essential requirement for a successful operation. Today it presents a different picture than even twenty-five years ago. The day appears to be gone when a mining property could pay its own way from grass roots to production. The country has been quite thoroughly combed for surface showings from which sufficient initial profit could be immediately garnered to pay for further development and production facilities. The four M's for success in mining-mineral, market, management, and money-are still essential; but doubled or tripled wage costs and steep advances in cost of equipment and supplies throw increased emphasis on adequate capital funds for bringing in a prospect and making it a producer. Consequently, the old picturesque, although seldom rewarding, grub- staking procedure where a single venturesome citizen might advance funds to a prospector on a fifty-fifty basis for whatever discovery he might find, has largely disappeared. Its place, to some degree, has been taken by the small syndicate of venturesome members who band together for furnishing funds to a group of prospectors for the same general purposes. Such a syndicate has a definite organization and is usually assured of sufficient initial funds, or flow of funds, to carry on work for several years. It is headed by an engineer-promoter who has had considerable field experience as well as personal knowledge of his prospecting crews. For the owner of a potential mining property who has ample capital, the problem is to determine (1) justification for the necessary investment in exploration and development, and (2) the economics of the enterprise as to size and degree of integration of the final operating entity. If the owner of such a property has little or no capital, he also faces these same basic problems but, in addition, must be able to present the findings of fact and persuade the prospective investor that the enterprise will produce

Jan 1, 1959

By George H. Willis

In the second half of the nineteenth century, bimetallism progressively replaced by gold standard. After World War I and 1931-33 depression, gold mainly reserved for official international transactions and internal use restricted. Changes since 1971 have shrunk official international use of gold. International payments deficits and surpluses now financed by private and official credit, rarely by gold. Historical review covers evolution of: (1) internal and external private use, (2) internal official use, (3) external official use, (4) role in IMF and (5) use as unit of account.

Jan 1, 1978

This summary of State laws on explosives was compiled primarily to ascertain what subjects relating to their control have been acted upon by each State legislature and, in general, how they have been treated. It does not include any legislation passed after 1942, or any proclamations, regulations, or administrative orders. It does not purport or attempt to be authoritative. If any problem arises involving interpretation of the statutes of any particular State, the original source must be consulted for the exact words used by the legislature. This summary, however, will be useful in determining whether relevant statutes exist, and in locating them quickly with a minimum of effort. It will be of value also in comparing statutes in one State with similar statutes in other States to determine what construction has been placed upon them by the courts of these jurisdictions or to contrast the varying provisions of many States upon a similar subject. To make these comparisons easier, the statutory provisions for each State have been grouped under several major topics in outline form. Although this sometimes has resulted in disruption of the continuity of individual acts, the increased general clarity and availability of comparable sections have more than justified the procedure followed.

Jan 1, 1943

By K Morrison

Australia’s ageing population means that by 2050 there will be 2.7 people of working age to support each Australian aged 65 years and over compared with five working people per retiree today and compared with 7.5 in 1970 (Swan, 2010). This means that there is going to be a greater demand on social services – for medical and aged care – from a smaller private income base. How will this gap be met? Australia is fortunate in that it has vast resources of mineral wealth; from iron ore, nickel and gas in Western Australia to the giant copper and uranium deposits at Olympic Dam in South Australia.The prospect of a meaningful profit based tax on this vast mineral wealth has been lost through Australian government’s handling of the issue in 2010 and with an industry fiercely opposed to the prospect of a mining tax. Hence, new ways of thinking are required. This paper looks at the issues facing the implementation of a novel scheme whereby Australia leases the mineral resources it extracts and thus derives income over the decades the metals are in-use in pipes, wires and structures with a premium paid for unreturned material or that used in dissipative applications. Applicable minerals could include copper, aluminium, nickel and rare earths. If Australia simply digs up and sells the metals once, the buyer becomes custodian of that resource and they benefit from controlling the future ‘above-ground’ resource stock.A complementary driver for a leasing scheme is the increasing importance of chain-of-custody following initiatives of the Responsible Jewellery Council with gold and diamonds, now with the potential to extend across commodities. The Australian minerals sector could thus position itself as a premium supplier with high social and environmental credentials.Recognising the implementation challenges, this paper includes a review of how such a system could be enforced to ensure that the metal is tracked throughout its life. It concludes with a discussion of the rates and terms should such agreements hold and suggestions for institutional arrangements for enforcing compliance.

Nov 22, 2011

By Michael Leslie Connor

The paper point out the services of the london metal exchanged on the mining.The investigation is divided at two parts: the tradings sessions and dealing and delivery dates. As well as, the london metal exchanged serves the world metal trade at large in three ways: a daily market price, a physical market and the insurance against market fluctuations.

Nov 20, 1969