Weekly journal-miner., 1909-09-22
LOW COST COPPER INVEST
 ARE GOOD
Shown That Returns Bring in Excellent
 Profit
Denver Mining Reeord.)

It is recognized that the usual standards of investment applied to the great majority of mining ventures are held to be different from those that are applied to railroads and oth- CT industrials. While there are ele- ments of uncertainty in all business ventures, it is commonly considered that they are more pronounced in the business of mining than they are, for example. in the case of a manufae turing enterprise having a regular supply of raw material and an advan- tageous position in the midst of a relatively permanent market. By the very nature of the average mining enterprise, it's future, beyond a varia- ble but somewhat limited period for which it's resources have been deter mined, is bound to be in the dark. Engineers may make reasonable esti- mates for some years in advance, but limit is usually applied in the na- ture of their statements.
 For these reasons, it is usual to re gard the necessary returns of interest upon ones investment as higher in the case of mine than in the case of man Ifacturing enterprises which, i in the light of present knowledge and Expectations, seem to have a prolong ed life before them. Some of the best writers consider that a mining investor should expect minimum Of [ per cent from his investment, in ad- dition to the return of his capital, because of the additional risks which he is believed to be taking. Mining investors, dealing in productive enter prises, usually expect as much as 10 per cent profit upon their capital, and it is therefore not unusual for stock market prices to be determined by an expected dividend yield of as much as 20 per cent upon the quoted prices this dividend yield including the rede uption of capital plus a good rate of interest. In some eases the dividend yield may reach as high as 50 per cent, where the life of the mine is believed to be very much limited.
 With these points in mind, it is in teresting to note what effects may arise in the open market when the mining enterprise is shown to be as lasting as an ordinary manufacturing enterprise can count upon being. In this class falls the so-ealled pOrphyry copper mines, when their resources have been sufficiently tested to prove the continuance of the ore supply for two generations or more. When huge eoneentrator has been set to work upon this type of ore deposits, turning out enormous quantities ot copper each year at lost cost, with market in every way as favorable as that enjoyed by the most useful commodities and with every prospect of continuance for many decades to come, it seems perfectly natural to consider the usual mining standards of interest return from such an en- terprise as too high. That lower re turn. in consideration of the manifest safety of the invested capital, is ae- ceptable, has already been shown by the stock market records of some of the "porphyry" issues. The tendency appears to be for prices to allow for lower yield upon the investment than is commonly expected from min ing stocks.
 In view of these facts, the speeu- Iator in this class of securities has good reason for counting upon higher ranges of prices, under given earnings, than he can legitimately expect in the case of more risky mining ventures. The markets have already pointed to this very conclusion, which is apt to become more pronounced when the mass of conservative capitalists, man agers of estates, bankers, etc, have appreciated this type of mining opera tions.