Trends Of Corporate Mineral Exploration Expenditures--1968-1971

The purpose of this paper is to investigate trends in exploration expenditures of a selected group of mining companies for the interval 1968 through 1971. The paper also compares these trends with other financial factors that are associated with various groups of companies and comments on the implications of these trends. Although a four-year interval is hardly enough time to establish a long-range set of trends from which operating rules can be derived, the fact that the four years selected are in the immediate past gives some sense of relevance to the matter of exploration expenditures at the present time and in the near future. The sample under study here 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 extraction, 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; for example, from oil and gas sates, Also, no companies which can be considered strictly as exploration companies are included in this study. Although this definition held up fairly well when studying this list in 1968, the strict application of this definition became more difficult through the years up to the present time. In 1971, three or four of the companies were changing their character in that they were phasing out of the mining business, and either deriving their income or planning to derive a substantial part of their income from activities other than mining. A study of