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By Robert J-M Ethier

"Sequential blasting has been introduced at Mines Gaspe to reduce the harmful effects associated with the instantaneously primed blasting method. Three stages of modifications had been tried to improve this method: trials of a rectangular pattern instead of the square one, trials of lengthened hole collars at the perimeter of the blast and trials of increased inter-row delay intervals from 35 to 50 ms. Results showed that improvements to the instantaneously primed blasting method were limited by the probability of increasing the number of bootlegs.Doing these modifications allowed the definition of a general approach to improvements before the sequential blasting method was introduced. This general approach included: planning of the mining sequence, following up on the drilling, loading and tying-in of each blast, compiling and evaluating blast results, comparing results from one bench to the other and moving along with one change at a time. This approach has permitted the successful introduction of the sequential blasting method in two steps: trials of blast by rows of delayed holes and trials of hole-by-hole blasts. The optimum result has been analyzed by high-speed camera and by computer blast simulations, The actual optimum sequential blast is obtained with a CORDLINE priming system using period 15, permitted in a large drilling pattern, with an intersequences delay interval of 230 ms and an inner-sequences delay interval of 50 ms.While these modifications were being introduced, a careful study of the drilling and blasting costs was made, which showed a sharp reduction of drilling cost per tonne. Even though there was an increased use of packaged slurry the blasting cost per tonne also dropped. The reduction in cost per tonne was explained by the fact that the average energy factor was maintained while the blasting pattern was expanded.The sequential blasting method, successfully introduced at Mines Gaspe, permits blasts of better quality, reduces the drilling requirements by more than 30% and helps to achieve improved productivity while minimizing costs."

Jan 1, 1984

By T. H. North, A. G. Glover, R. J. Pick

"Girth welding operations represent the rate-limiting step in pipeline construction. A joint industry-university program was set up to establish the field welding characteristics of large-diameter, high-strength line pipe.Theoretical work carried out at the University of Waterloo showed that pipe wall thickness and joint misalignment prior to welding has a marked influence on the lifting stresses acting on the root pass of girth welds. Pipe diameter and pipe ovality had negligible effects. Super-position of lifting and residual stress (caused by the fusion welding operation) highlighted regions of the weld bead most susceptible to hydrogen-induced cracking.The field welding characteristics of 1219-mm-diameter, 13.72-mm-wt Grade 483 line pipe were evaluated using a specially designed test rig. The principal test variables were lift height, delay time after root pass deposition, preheat temperature, pipe composition and joint misalignment prior to welding. For any given life, preheat and joint misalignment prior to welding had the most significant effect on cracking tendency.The output of this program has industrial significance and illustrates the beneficial features of university-industry collaboration.IntroductionField welding operations comprise the rate-limiting step during pipeline construction. Crack-free girth welds must be made in a wide range of weather conditions and consequently the field weldability of line pipe compositions directly affects pipeline integrity and construction economics.Pipe-laying practice comprises root bead deposition followed by a skidding operation involving lifting (or lowering) the pipe length onto skid s so that the next pipe length can be aligned prior to welding. Consider pipeline construction using 24.4-m lengths of 1219-mm-diameter , 13.72-mm-wt Grade 483 pipe weighing approximately 10,000 kg. Skidding involves loading a 3-mm-thick root bead by moving the free end of the pipe through vertical distances of up to 700 mm . The likelihood of cracking in these circumstances depends on the inherent crack susceptibility of the pipe composition employed, on the hydrogen content of the deposited weld metal and on how well the joint handles the external stressing caused byskidding."

Jan 1, 1981

By Wenbin Zhang, George W. Poling

"Prior or simultaneous addition of ammonium sulphate can, not only enhance the activating effect of hydrosulphide ions on xanthate flotation of malachite but it can also eliminate possible detrimental or depressing effects of excess residual hydrosulphide . Use of relatively inexpensive ammonium sulphate appears to reduce the consumption of the much more expensive sulphidizing agent for optimal flotation recovery INTRODUCTIONOxidized copper minerals float poorly with conventional thiol-type collectors. This is believed to be due to the nonadherent character of the collector coating, which is readily re- moved by particle abrasion. Rosas and Polingr reported emulsion flotation seemed capable of resisting abrasion during the flotation of non-sulphide copper ores. It appears that the most common flotation technique for oxidized copper minerals comprises sulphidization with Na .S and subsequent treatment by sulphydryl collector. The principles of this method are available . Malghan recently reviewed the studies on the role of sodium sulphide in the flotation of oxidized copper, lead and zinc minerals.It is well known that in the sulphidized flotation of malachite, the activation process depends strongly on the concentration of the sulphidizing agent, i.e., insufficient sulphide gives poor recoveries because of inadequate sulphidization; excessive sulphide also causes poor recoveries due to the depressive effect of the residual hydro-sulphide ions in solution. A major difficulty in sulphidization, especially with a varying feed nature, is to establish and maintain the optimum sulphide concentration in solution. In plant practice, vigorous control of sodium sulphide is required and stepwise addition of the reagent is recommended to improve the efficiency of the process. Soto and Laskowskim have found that malachite, depressed by an excess of sulphide ions, can restore its floatability if air or oxygen is introduced to the pulp. They attributed this to the oxidation of the HS - ions on the surface of the mineral. Jones and Woodcockuvi showed that a sulphide ion selective electrode could be used to optimize the conditions (e.g . amount of hydrosulphide, sulphidization time, flotation time) more readily and precisely than existing methods in the flotation of oxidized copper ores."

Jan 1, 1989

By E. I. Vargha-Butler

The determination of surface tensions and contact angles of coal particles is of great interest for coal beneficiation processes such as froth flotation and oil agglomeration and for the inclusion of coal particles into oil droplets as a means of enriching the fuel. Methods for contact-angle measurements on small irregularly shaped solid particles have not been available in the past. Therefore, we recently developed a novel technique to determine contact angles and surf ace tensions of coal particles. Two types of bituminous and one type of subbituminous coal particles have been tested. The technique used is called the freezing-front technique and it considers the behaviour of the test particles (in the range of 20-250 pm) at the solidification front of carefully selected, well-defined solidifying melts (matrix materials) such as thymol, biphenyl, naphthalene, salol and 2-phenyl phenol.The results show that the technique works well, providing quantitative and detailed information on the wettability of coal particles. The sensitivity of the method is so high that a difference in contact angle of approximately 4 degrees between the smaller and the larger particles is clearly registered.

Dec 1, 1981

By Chri Rule

"This paper tells the story of the rapid commercial application of stirred milling technology at Anglo American Platinum’s many Concentrators. The first stirred mill – a 10 000 litre IsaMillTM; the largest at the time, was commissioned in late 2003. The project development work was presented at SAG 2001. This operation was “proof of concept” and vindicated the decision to scale up the technology; allowing a rapid and extensive roll-out of mainstream regrind mills as well as several further flotation concentrate regrind mills, over the next six years.Currently 23 stirred mills are in operation with 64 MW of installed drive capacity – this paper describes the projects’ roll-out and the significant results achieved to date. Many operational problems have been solved along the way, some of these will be described. The introduction of the technology has seen a step change in metallurgical results and progressively decreasing operating costs."

Jan 1, 2012

By M. Potesser

In the past, different furnace types have been developed for use within the copper industry, with two common anode furnace designs typically used in copper smelting plants worldwide: the tiltable reverberatory furnace (KPO) generally used for the secondary copper industry and the cylindrical or drum type anode furnace (TRO) for handling a liquid blister charge generated in primary copper production. The disadvantage of the KPO is its design related to the longer refining period, because of the low bath depth, however it provides good conditions in the melting period due to its large bath surface. On the other hand, small amounts of scrap charged into the TRO increase the melting and dissolution period, but it provides good conditions for the refining period. The newly-developed elliptical furnace concept (TRE) offers the advantages of each of these furnace types. The special design allows melting of the scrap more efficiently than in the KPO and refining the liquid copper more efficiently than the TRO. This paper shows a metallurgical comparison of the three furnace types in regard to the melting period by heat technological considerations (optimized arch design) and of the refining period done by CFD with concentration on current, recirculation and dwell time of the gas in the melt. The paper outlines the possibilities for a reduction of the tap-to-tap time and energy consumption as well as for an increase of the production capacity, which can be achieved by applying the TRE instead of the conventional furnace designs.

Jan 1, 2007

By P. J. Urso

"This paper discusses the mining problems encountered at the Fording River coal mine to date, and how they have been solved. All of the production now comes from surface mining, but underground hydraulic mining is planned and briefly described. Other facets of the operation, including markets, equipment and personnel, are covered. IntroductionFording Coal Limited was formed in 1968 to mine and market metallurgical coal resources held by the company in the East Kootenay region of southeastern British Columbia. The company, at its Fording River operations, holds approximately 48,000 acres of coal lands, having an estimated 2.0 to 3.0 billion long tons of metallurgical coal in place. (Although not a point for further discuss ion in this paper, the company also holds approximately 1.0 million acres of mineral rights. These consist primarily of coal in Alberta, potash and coal in Saskatchewan, and minor industrial mineral holdings of limestone, salt and bentonite in the three western provinces.)Fording Coal is owned 60% by Canadian Pacific Investments Ltd. and 40% by Cominco Ltd. Inasmuch as Cominco itself is owned approximately 54% by CPI, it is seen that the effective CPI ownership of Fording is about 82%. The company, originally staffed and managed by Cominco, has been independent since January, 1978, with its own board of directors, management, staff and employees.The company's head office is in Calgary, Alberta. The Fording River operations are located approximately 45 miles north of the Crowsnest Pass, near the Alberta/British Columbia boundary, only 95 air miles and 200 road miles from Calgary.A contract was signed in 1969 with the Japanese steel mills to provide 45 million long tons of metallurgical coal over IS years, commencing in 1972 at an annual rate of 3 million long tons per year. Despite some start- up difficulties, the mine and plant facilities achieved their rated capacities in 1975, producing and shipping at the 3-million-Iong-ton level. The coal specifications are shown in Table I."

Jan 1, 1980

By S. S. Rahman, A. Gholami, M. A. Aghighi

"This paper provides a foundation for studying the growth of fractures in presence of other discontinuities and different anisotropies of low permeable hydrocarbon formations and helps to improve the design strategies for multistage fracturing.The multistage fracturing technology has recently been used to exploit low permeable hydrocarbon reservoirs. However, the mechanism of hydraulic fractures interaction and the impact of local heterogeneities on ultimate trajectory of the growing hydraulic fractures are not yet understood in depth. A fully coupled poroelastic Finite Element based model is developed to investigate the mixed mode propagation behaviour of growing hydraulic fractures. This model takes advantage of an explicit representation of the fracture which enables us to take the effects of rock and fluid related parameters into account. Moreover, impact of fracture geometry and leak-off phenomenon is investigated. The refined mesh around the crack provides the added advantage of more detailed stress distribution, pore pressure change and back stress in the vicinity of the fracture and in particular at the fracture tip. The potential deviation propensity of the fractures is evaluated based on the fundamental rule that fractures propagate perpendicular to the direction of the minimum horizontal stress.This study shows that pressurization of transverse hydraulic fractures results in the reorientation of local principal stresses, particularly in vicinity of fracture tips. Variation of flow patterns clearly influences the evolution of shear stress around the fracture tips which will potentially lead to mixed-mode I and II fracturing and consequently, fracture deviation. The presence of local heterogeneities such as preexisting fissures and/or fractures is a main source of such pore pressure induced stress redistribution and reorientation and potential deviation of hydraulic fractures.Most existing models ignore or simplify the effect of pore pressure/stress coupling as well as the fracture geometry and fluid flow within the fracture. Also, the fluid leak-off from the hydraulic fracture into the formation, which is a controlling factor in fracture growth, is often considered using analytical models. Taking advantage of a fully coupled porelastic model along with an explicitly discretized fracture, this study provides a more realistic insight into the complex fracture propagation processes of multistage fracturing operations particularly in presence of reservoir geo-mechanical complexities."

Jan 1, 2015

By Q. Li, X. -L. Lei

Accompanying global energy shortage and high energy prices, shale gas has been the focus of exploration and it has attracted great attention from both academia and industry. The combination of horizontal drilling and hydraulic fracturing enables the extraction of huge quantities of shale gas from impermeable shale formations. During the process of hydraulic fracturing, great amounts of water, sand and chemicals must be injected into the shale formation at a high pressure, which may trigger seismicity. Such events could occur due to the presence of faults or the reactivation of these potential faults. Shale is the main component of source rock in the Sichuan Basin, China, and has the greatest contribution to the natural gas of the basin. In order to investigate the fracturing mechanism of shale in the Sichuan Basin, China, a series of rock fracture tests under triaxial compression were carried out in the laboratory in order to investigate the hydraulic fracturing behavior in relation to the seismicity. Based on the high multichannel waveform recording system, the detailed spatio-temporal distribution of acoustic emission due to micro-cracking was used to examine the deformation and fracture behavior of shale. In addition, the effects of confining pressure on the deformation and fracture in shale under triaxial compression by acoustic emission monitoring and X-ray computed tomography were discussed in the paper. The experimental results indicate that the shale samples demonstrate brittle fracture behavior. The confining pressure has a great effect on the complexity of the fracture planes and the spatial distribution of acoustic emissions, but few contributions to the location of the major hydraulic fracturing plane. The foliation of shale plays a dominant role in the rupture process and the geometry of the major hydraulic fracturing plane. The high confining pressure increases the strength and restrains the deformation of shale during compression process. These results shed some light on the understanding of onset of hydraulic fracture initiation not only for shale gas exploration and production, but also for CO2 geological storage and underground energy storage.

Jan 1, 2015

By Robert B. Parsons

"The customary onslaught of government budgets this spring offers lots of interesting reading to the mining industry.While the favourable changes tend to get all the fanfare, there are some ""sleepers"" in the host of proposed changes which will be bitter pills for some mining people to swallow.IntroductionOn a scale of one to ten, the Canadian mining industry will probably give this year's federal and provincial budgets a score that is pretty close to five. Although some budgetary proposals are generally perceived to be favourable to the industry, there are other provisions (and lack of provisions) which are considered to be negative.This month, Tax Notes examines in a summary manner the principal features of the 1985 federal and provincial budgets which are of particular interest to this country's mineral industry."

Jan 1, 1985

By P. Venkatasubramanian

"In recent years, computer based ""expert systems"" have been taking on large complex tasks for which no exact algorithmic solutions are feasible; tasks previously reserved for human experts requiring empirical knowledge, judgment, experience, developing a ""best solution "" by the use of plausible reasoning. Mining method selection is an appropriate area for the application of an expert system because extensive and detailed knowledge is required to make a ""best"" interpretaion of frequently ambiguous geological information. The expert system model presented here would enable users to apply expert knowledge to the evaluation of methods for coal deposits mineable by underground methods. IntroductionIn an increasingly complex and specialized world, human expertise spanning scientific, economic, social and political issues plays an increasingly important role in all branches of engineering. This is especially true of mining engineering. The number of scientific and professional disciplines involved in mine planning and evaluation, illustrates the problem. A conservative list includes geology, geophysics, geotechnics, hydrology, mining, environment, and economics.Engineers are almost obliged to be experts in at least one of the above disciplines if they are to handle the volume of information required in the planning process. Although computers have become indispensable tools in many endeavours, there is continued reliance on the human expert's ability to identify and synthesize these diverse factors, to form judgments, evaluate alternatives , and make decisions . This is especially true with regard to problems that are not easily amenable to precise formulations.The precious resource of human expert is also fragile and transient. The departure of a crucial expert from an organization ma y cause serious dislocations. Senior experienced people impart their knowledge of younger colleagues, but the demand for their talent may not leave sufficient time for such educational efforts. In recent years, computer based "" expert systems"" have been taking on large complex tasks for which no exact algorithmic solutions are feasible; tasks previously reserved for human experts, requiring empirical knowledge, judgment , experience, developing a ""best solution"" by the use of plausible reasoning."

Jan 1, 1988

By Liu Liching, Yan Hongjiu

"In China, the electromagnetic induction initiating system f or blasting engineering has been greatly developed in recent years. With this system, the total number of detonators that may be blasted in each round has been increased from 420 to 940 as a result of the invention of a powerful exploder, and the length of leg wires of a detonator has reached 12 metres. These developments make the new system suitable for blasting engineering of medium scale. Another attractive feature of this system is a set of testing instruments which have been invented that enable a final check of the system to be made before firing as in normal electric blasting. This paper reports on these developments.IntroductionThe initiating system for blasting explosives is one of the key factors to the success of blasting engineering, along with the progress of explosives and blasting technology. Today, we have initiating systems which may be divided into two groups: electric and non-electric. The earliest initiating system was non-electric. Many mines, as well as many projects where rock excavation was involved, were blasting non-electrically before the new nonelectric initiating system came into use in the 1970s. Electric and non-electric initiating systems are the two main initiating systems which are now being widely used, each having its advantages and disadvantages. In electric blasting, the blasting supplies and the blasting circuit can be checked before it is used or fired and, therefore, is regarded to be more reliable. In many large-scale blasting engineering where reliability of the initiation is of great concern, a checkable initiating system is preferable. The electric initiating system is not considered to be as safe as the non-electric initiating system due to its inability to choose proper ignition energy. Therefore, a non-electrical initiating system would be preferable where a hazard of stray currents or static electric energy exists. At this stage of development, one would say it would be advantageous to develop a new initiating system."

Jan 1, 1988

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 Michel Garon

"Several years ago computer control of the flotation process was successfully implemented at the Matagami concentrator of Noranda Mines Inc. At that time this was the first computer application being installed at this operation. The last few years have seen an extensive use of programmable controllers in areas such as the copper and zinc dewatering circuits and the lime preparation system. With the aid of such instruments, these areas have attained a high level of automation and as a result, a high degree of efficiency. The controllers have proven to be very dependable and easy to use.IntroductionThe Matagarni Division of Noranda Mines Inc. operates two mines in the Matagami District of northwestern Quebec which is located about 650 km northwest of Montreal. The mines ship ores to a central concentrator whose throughput averages 95,000 tonnes of ore per month. Metal contents of the mill feed average 0.9 per cent copper and 5.0 per cent zinc. Concentrate outputs are approximately 3,200 tonnes of copper and 8,200 tonnes of zinc per month.The concentrator commenced operation in 1963. An on-stream X-ray analyzer was installed in 1968, providing analyses of several samples in the flotation circuit without the aid of a computer. In 1974, control of the circuit by computer was added to the system. As a result, zinc flotation efficiency improved considerably and reagent costs decreased through the reduction of copper sulphate consumption.In the past few years it was realized that significant improvements could also be made in other parts of the operation . Copper and zinc dewatering circuits and the lime preparation system were identified as major areas that could drastically benefit from automation. In 1982, programmable controllers were seriously considered as an attractive alternative for achieving the company 's goal. Because of their relative lowcost and their high degree of flexibility, they were selected for implementing automation and, for improving the efficiency in each of these areas."

Jan 1, 1985

By J. G. Cullain

In conjunction with the over-all goals of energy conservation at Inco Metals Company, a program of improvement in compressed air utilization was established. Air flows were monitored and compared to calculated requirements to establish efficiency by area. With the cooperation of area management, measures were implemented to reduce nonproductive usage. At the operation, annual savings in power consumption alone were 80,000 dollars. The program is being extended to other mine areas within the Division.

Jan 1, 1979

By C. O. Staples, J. G. Morrow

The application of cationic flotation to the upgrading of magnetic concentrates was investigated in the laboratory by both batch and continuous test procedures. It was found that the collection of coarse gangue particles with amine, heretofore considered a serious obstacle to this particular application of cationic flotation, is greatly enhanced by a drastic reduction in what might otherwise be considered normal impeller speed. Gangue flotation is in-dependent of variations in the rate of aeration. The collector and Crother additions and the impeller speed which favour the formation of a matte froth yield optimum results.

Jan 1, 1966

By H. M. Giegerich

"INTRODUCTIONThe Red Dog Project in Alaska is being developed by Cominco Alaska, a subsidiary of Corninco Ltd. of Canada, and the Nana Regional Corporation, one of the 12 native corporations created by the Alaska Native Claims Settlement Act of1971.The State of Alaska is also a very key part of the project through its financing of the transportation system for Red Dog. Red Dog will be the third, and largest, of Cominco's Arctic mining developments in the past thirteen years, after the Black Angel Mine in Greenland, which started up in 1973, and the Polaris Mine in the Canadian Arctic, which began production six years ago in 1982.Red Dog is one of the world's great mineral deposits, with a unique combination of large size, high-grade, and a waste-to- ore ratio less than I: I, which will make it the world's largest, and one of the lowest cost zinc producers, when at full production. The present mineral reserve is estimated to be 85 million tons , at a grade of 17.1010 zinc, 5% lead, and 2.4 ounces per ton of silver. Based on the current production forecast, this will give a mine life of almost 50 years, and the deposit is still open in two directions, although the structure is becoming thinner at depth. As well, there is a satellite zone about one mile south of the main deposit which could contain up to another 8 million tons of mineral at Red Dog grades or better. This is not presently included in the reserve due to potential processing difficulties.In relation to other zinc deposits, Red Dog is the second largest ever discovered, smaller than the original Broken Hill deposit in Australia, but larger than Cominco's own Sullivan Mine in British Columbia, which is number three. It is quite possible that, when the area is adequately explored, Red Dog will be number one."

Jan 1, 1989

By R. Ghomashchi

Wear, fatigue and corrosion are the most widely encountered modes of failure in materials used in engineering applications, including aero-gas turbines. Although wear is distinctly classified as adhesive, abrasive, erosive, fretting and so on, there are usually more than one wear mechanism involved in the failure of components in service because there are many systems and materials variables active in materials wear that makes it more difficult to study. This is further complicated by the discrepancies between the results of laboratory tests and field data. The present investigation was set up to examine the wear characteristics of M50 and T1 high-speed steels at both room and elevated temperatures to draw a thorough understanding of the wear behavior of this class of high-speed steels. This article focuses on the mechanical and microstructural characterization of wear for T1 and M50 high-speed steels using a pin-on-disk wear machine.

Jan 1, 2005

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 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