| Title: | Market Investing |
| Moderator: | 2155::michaud |
| Created: | Thu Jan 23 1992 |
| Last Modified: | Thu Jun 05 1997 |
| Last Successful Update: | Fri Jun 06 1997 |
| Number of topics: | 1060 |
| Total number of notes: | 10477 |
This topic came up in our car pool the other day:
One of the poolers is considering investing in a mining stock. In this
investigation the company has listed (ex.) $878M in assets.
The question that arose: Are the minerals or metals still to be mined
listed as a part of their stated assets? If not, how would the right
to mine a specific area show on the balance sheet?
Terminology may not be absolutely correct here but I think you get the
drift
Thanks,
Larry
| T.R | Title | User | Personal Name | Date | Lines |
|---|---|---|---|---|---|
| 867.1 | Look for the reserves, not assets | MROA::KATZ | Not extinct in Massachusetts | Thu May 25 1995 19:39 | 13 |
Larry,
Having worked for a mining company for seven years in another life
(AMAX, now Cyprus-Amax, AMAX Gold and Alumax) I can tell you that a
mining company's baalnce sheet does not include the value of minerals
yet to be mined but reserves are stated elsewhere in the annual report.
Assets on the balance sheet include the acquisition cost, equipment
and the development cost of opening up the mine site for current/future
production. It typically takes up to 7 years to open an underground
site and 3 years for an open-pit operation.
Bob
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