cudeco and high frequency trading., page-60

Jumpstart,

My bone of contention is very simple and has been there for a long time.

The JORC uses metal prices that are NOT market prices e.g. copper at $2, and ends up with a Cueq of something like 1.87%.

Do the same calculation with current real market prices and the number ends up at 1.4% Cueq.

By choosing particular prices for metals the % can be pushed up or down. The lower you make the copper price the larger % you get for example.

In my book, the real Cueq using todays pricing is 1.4%. The JORC using non real prices gets 1.87%.

So choice of pricing adds about a third to the realistic value.

Try putting copper in at 10c and see how big the Cueq number becomes for a bit of a laugh!