The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1922-11-09

Z in the sense that the transaction MAY
be expected TO result in early regular
, dividends, but it may be. neverthe-
less a good speculative business
, proposition and profitable There is
the chance for profits during the de-
velopment period from the enhanced
price of the stock as the prospect de-
lvelopment progresses, and, of course.
always the expectation that sooner or
later the prospect will be a mine and
then the stock will have an intrinsic
value greater many times than the
price paid. Sometimes and often. me
buy mining stocks solely on the chance
that the price on thee curb market
will rise or be raised. and that they
can unload at a profit This is a spec
ulation, and in the same class as any
speculation in other stocks or with the
markets
The chief, and TO be expected, cause
of loss in investments in mining pros
poets is the failure to find valuable
ore in commercial quantities in the
property. Not one in a hundred pros
poets makes a mine. Generally the
limited work of the prospeetOr or the
owner determines this. and the dis
coveries die aborning. Other pros
poets with a little work. hold out
much hope and encouragement The
prospector comes to have faith in
them, the mining man thinks that they
will make good. and the engineer
makes a favorable report on them as
prospects. At this stage the PROPOSE
ton is likely to be offered to the in
vestor as usually much more money is
needed than the owner has or can af-
ford to risk
Provisions of sufficient funds for the
company at this stage will not how
ever, ensure success. The business
must have honest and competent man.
agement and probably also technical |
engineering guidance. The company
must be financially able to carry out |
the necessary explorations and devel-
opments. These success factors being |
all favorable, there is then reason to
expect profitable investment, bar
ring, Of course the inherent physical !
risk of there not being enough valu-
able ore in the property to make |
paying mine.
1t should hardly be necessary to eau
ton a business man as to the wisdom
and necessity of skilled, competent
of any business. Yet it
is true that many mining companies,
particularly those engaged in making
mines from prospects, are woefully
chiefly for the reason
that many people do not recognize
that mining in nearly all its phases is
an intricate specialized form of bust
ness activity, requiring special expert
ence and technical training as well as
a high order of business ability.
Lack of Capital Causes Failures.
Most prospects take much more
money to prove than the sanguine
owner or promoter expects, or the
stock buyer is led to expect. Lack of
sufficient capital is the cause of many
failures, for rarely can enough ore be
taken from a prospect to pay for its
development.
All of the rich mines now Operat
ing were once prospects. in most cases
not many years ago, and each year
many prospects are developed into
mines making great riches for many
and wealth for the com
Those who are prepared tC
take the money risk involved, and who
will use hard common sense and good
business Judgment and who will study
the game, will find as much interest
and profit in investing in mining pros
poets as they will in most other bust
persistent.