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Jan 1, 1943

By Edgar F. Cruft

INTRODUCTION It is sometimes said that "mines are made, and not found." I rather doubt that the exploration geologist would be overly sympathetic to that statement, and, of course, like most one-liners it is only partly true. Access to different financial markets are important at the mineral prospect stage. The modern mine financier has a much more complex, and interesting, job than the financiers of an earlier era, for example, the Canadian financiers of the 40's and 50's who had one simple set of options; i.e. float a company, promote it, and sell an equity stock issue, and then promote it some more. QUALITIES OF A FINANCIER Because technical people are seldom taught financing in their basic training, and because they are usually not involved in it until at quite a senior level in their careers, the whole field often acquires a certain mystique. The engineering professions have too often believed financing is the province of the accountant or financial executive and just as we in the technical world are often too quick to bristle if the latter try to tread on our domain, the opposite can just as easily be true. Unfortunately, this is another example of a compartmentalized individual, and that is one thing the successful financier cannot be. However, to be a successful financier one does not need extensive training or experience in accounting or finance. In fact it can sometimes be a disadvantage to get too buried in working only from the standpoint of discounted cash-flow analyses, ROI's, etc. It must be stressed, however, that one had better know how these analyses are made, and be knowledgeable in understanding a balance sheet, and have a good understanding of financial terminology. The difference between a simple project-type debt financing with a commercial bank and a more inventive and creative financial package comes from an intuition and an experience relating to risk-reward factors. The most important element is "common-sense", based on knowledge and experience. The goal is structure a financial package that fits the project, and in so doing it is important to recognize that it must fit within the limitations of the group supplying the money. I find insensitivity to recognize these constraints the most common mistake made in the field. Put yourself in the other person's place and understand his sources of funds and financing limitations. The engineer has an advantage in financing, as he or she has (or should have) a better idea than anyone of the value of the product, be it the mine, prospect, or company i.e. the intangible or potential worth which cannot be put on a pro-forma. He also knows, or should know, the risks involved. Two projects might look the same on paper, but a good financier must have a sense of when to take whatever deal he can get, and when to hold out based on his evaluation of future developments. It is essential to have a good sense of commodity values and trends, trends affecting the general economy (money supply, interest rates, effects of energy costs, etc.), and political considerations. He must also have a good understanding of the science and art of taxation as deals can often be financed using the government as a silent and unwitting partner by proper use of the tax laws. WHEN TO SEEK FINANCE The first critical decision to make in financing a mineral prospect is "when". At the exploration level, when it is only a dream in the geologist's eye, the alternatives are more limited than when it is a fully-engineered project. The "when" decision depends on how much in internal funds the company has to play with, and how desirable it is to invite financial participation to spread the risk. Assuming that decision is not taken out of lack of money, no one can categorically say when to do it. There is

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Table

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Jan 1, 1938

United Engineering Trustees, Inc. W. D. B. MOTTER, JR., '40 A. L. QUENEAU, '41 ALBERT ROBERTS, '39 The Engineering Foundation GEORGE D. BARRON, '40 F. F. COLCORD. '42 A. L. QUENEAU, '41

Jan 1, 1939

Jan 1, 1902

By John J. Strohl, Henry J. Schwellenbach

This paper relates the results obtained by decreasing the size of feed to a rod mill screen circuit. As would be expected, added production was gained and a finer grind with no tonnage loss was made possible.

Jan 12, 1950

Following the declaration of a national emergency by the President on Dec. 16, 1950 the Office of Defense Mobilization was established with Charles Wilson as director. It has been obvious since the entry of Red China into the Korean War that the previous defense setup was not adequate for accelerated mobilization.

Jan 2, 1951

IRON AND STEEL COMMITTEE ALBERT SAUVEUR, Chairman. A. A. STEVENSON, Vice-Chairman. HERBERT M. BOYLSTON, Secretary, Abbot Bldg., Cambridge, Mass. John Birkinbine, William Kelly, J. S. Unger, William H. Blauvelt, Charles Kirchhoff, Felix A. Vogel, James Gayley, Richard Moldenke, Leonard Waldo, Henry D. Hibbard, Joseph W. Richards, William R. Walker, Henry M. Howe, C. F. W. Rys, William R. Webster, Robert W. Hunt, E. Gybbon Spilsbury, Frederick W. Wood. J. E. Johnson, Jr.,

Jan 1, 1914

[VOL. XXXVI. Page. Line. 155 29 For "Joachimstahl," read "Joachimsthal." 215 Foot-note 2. For " May, 1892," read " May, 1902." 216 21 For " ack-screw," read " jack-screw." VOL. XXXVII. 31 3 For "quantity of tons," read "quantity of slimes." 35 10 Expunge "recorded in Table VII." 37 24 Expunge "to." 38 33 For "page 89," read "page 9." 44 40 For "page 86," read "page 6." 47 In table, third line under heading "Excavators and Conveyors," expunge "per 40 ft. of."]

Jan 1, 1918

By C. H. Burgess

ON June 5, 1947, Secretary of State George C. Marshall in a speech at Harvard University outlined a plan for the economic recovery of Europe. The plan contemplated that the United States should provide assistance which would enable the European nations better to help themselves and to help each other to reconstitute from their war-torn lands conditions which would make possible decent standards of living. The Foreign Assistance Act of 1948 was passed in April of that year, and established the Eco-

Jan 10, 1950

Mining headlines in 1952 dealt mainly with expansion as the industry aimed for an ever increasing production to meet the nation's needs. Huge sums were expended for equipment, research, and development. Headlines told part of the story. Negotiations between San Manuel Copper Co. and the RFC finally resolved in a $94 million loan for the development of low grade Arizona ores. Magma Copper, parent firm was to supply an additional 8 million. Kennecott Copper Co., deepening its Deep Ruth Shaft of its Ruth, Neyy mine, announced that the shaft would be in full production in 1953.

Jan 2, 1953

By Elmer A. Jones

Development work in mines of St. Joseph Lead Co., Southeast Missouri, using trackless loading equipment shows definite advantages: Speed of cleaning, ability to work on steep grades and sharp crosscuts, good later tracking conditions, and possibility of wasting rock in old abandoned stopes.

Jan 6, 1950