Study week on the econometric approach to development planning

Grundfragen der englischen Volkswirtschaft

Bibliographic data

Monograph

Identifikator:: 834623471

URN:: urn:nbn:de:zbw-retromon-30699

Document type:: Monograph

Author:: Holzer, Franz

Title:: General-Zoll-Tarif für die Ein- und Ausfuhr aller Waaren folgender europäischen Staaten: Oesterreich-Ungarn, Deutschland [usw.]

Place of publication:: Wien

Publisher:: Spielhagen & Schurich

Year of publication:: 1884

Scope:: Online-Ressource

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

242 VALUATION, DEPRECIATION AND THE RATE-BASE the problem has not been advanced and it is the belief of the author that it is not possible to determine a rate of interest that would apply equally well to all mining investments. The risk incurred by investing in a property that has been slightly developed is much greater than the risk in the case of a well- prospected ore body even when the mines contain similar ores and will be operated under similar conditions. Then again the average risks in copper mining differ from the average risks in gold mining and so on. Mr. H. C. Hoover has tabulated the risks of mining as follows:* “1. The risk of continuity in metal contents beyond the sample faces. “2. The risk of continuity in volume through the blocks estimated. “ 3. The risk of successful metallurgical treatment. “4. The risk of metal prices, in all but gold. “5. The risk of properly estimating costs. “6. The risk of extension of the ore beyond exposures. “#7. The risk of management.” Several of these risks are found in industrial enterprises (Risks 4, 5 and 7). The risks of continuity of ore body and of ore values are peculiar to the mining industry. The limited market for the mineral products and the effect of the volume of the output on the prices that can be obtained increases the risk that capital must take. The problem of obtaining proper metal- lurgical treatment is an important one particularly when start- ing operations at new properties. The fact that the mineral constituents of the ore may change as greater depths are reached and that the previously satisfactory flow sheet may no longer realize the percentage of extraction on which the profits were based cannot be ignored by the investor. The interest return that might be attractive to an investor in a proven district might not be sufficient to attract capital in a district where the mines are still prospects and where the depth of the mineraliza- tion has not been tested. * H. C. Hoover, “Principles of Mining,” 1909.

Access restriction

Copyright

fullscreen: Grundfragen der englischen Volkswirtschaft

Monograph

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation