Trends In Corporate Mineral Exploration Expenditures 1968-1971

An investigation of trends in exploration expenditures for a selected group of mining companies was undertaken for the interval 1968-1971. These trends were compared with financial factors that are associated with various groups of companies and the implications of these trends are indicated. The sample consists of 21 mining companies, of these, 19 are listed on the New York Stock Exchange and 2 are listed on the American Exchange. Twenty are American, one is Canadian. All are fundamentally "mining companies" in that they derive the bulk of their income from the ex- traction, sale, and at times, fabrication of metals from their own mines. This is in contrast to companies which have mineral exploration departments but derive the bulk of their revenues from sources other than mining, such as oil and gas sales. No companies which can be considered strictly as exploration companies are included in the sample. This definition held up in 1968, however, its strict application became more difficult through the years. In 1971, three or four of the companies were changing their character in that they were phasing out of the mining business and deriving a substantial part of their income from activities other than mining.