A Study of Methods of Mine Valuation And Assessment, With Special Reference to the Zinc Mines of Southwestern Wisconsin

Cover A Study of Methods of Mine Valuation And Assessment, With Special Reference to the Zinc Mines of Southwestern Wisconsin
A Study of Methods of Mine Valuation And Assessment, With Special Reference to the Zinc Mines of Southwestern Wisconsin
William Lawrence Uglow
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In spite of the fact that a prospective purchaser would use a high legree of conservatism in the selection of the factors used in arriving at the sale value of a mining property, and considers that thereby the risks to be encountered during operation are no greater than those in any other kind of business, it is nevertheless true that banks do not lend money to a mining business at the same rate as to other industrial or commercial enterprises.
D. Individual Versus; Average Mine Costs.
The ques
...tion has arisen as to whether it is correct to base the. valua- tion of a mining property on the actual costs as shown by the records of the operating company. The value that the general property system aims to place upon a property is the ''full value thereof at private sale" — that is, the value to a prospective purchaser. It is common sense to maintain that the value of a property to anybody is based not so much on the probable costs as they will be incurred by the sellers, as on the probable costs as they will be incurred by the buyers.

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