LKE (ASX) Ann: Investor Webinar Invitation

Originally posted by LuckyCharmz: ↑

I'm not clinging on you can see my disclosure below my posts and who said I didn't take on the advice

You're right, there is a crucial difference between resources and reserves, especially when it comes to minerals and natural resources.

Here's a breakdown:

Resources:

Definition: A concentration of minerals or materials of economic interest in or on the Earth's crust that has been identified and measured with reasonable certainty.

Characteristics:Not all resources are economically viable for extraction at the present time.The quantity and quality of the resource may be uncertain.Further exploration and development may be needed to convert a resource into a reserve.

Examples: Potential oil deposits identified through seismic surveys, undiscovered mineral deposits based on geological knowledge.

Reserves:

Definition: A portion of a mineral resource that has been demonstrated to be economically and legally extractable under current socio-economic and operating conditions.

Characteristics: Proven economically viable for extraction based on detailed studies and analysis.Quantity and quality of the resource are well-defined with high geological confidence.Legal and regulatory approvals for extraction are in place or attainable.Examples: Proven oil reserves with established drilling data and production plans, coal reserves with defined seams and extraction methods.

Valuation:

Resources:Valued based on potential future profitability, considering factors like estimated quantity, extraction costs, market price, and technological advancements.Value is inherently speculative and prone to change as more information becomes available.Often reported using risk categories like Inferred, Indicated, and Measured, reflecting the level of geological confidence.

Reserves:Valued based on their present net worth, considering the estimated cost of extraction and processing compared to the expected market value of the extracted material.Offers a more reliable estimate of economic viability for investors and financial institutions.Reported using classifications like Probable and Proven, based on the level of economic and technical feasibility.

In summary:Resources represent the potential for future extraction, while reserves represent the confirmed ability to extract profitably under current conditions.Resource valuation is speculative and based on potential, while reserve valuation is based on present economic feasibility.I hope this clarifies the difference and helps you understand how resources and reserves are valued.

Expand

Cheers, note the word 'potential' in the definition of resources. Then note the word 'feasibility' in the definition of reserves.

Early on an explorer makes a discovery and there may be lots of 'potential'. Then comes the hard work of working out the 'feasibility' of spending money to go into production etc.

The art to making a dollar in this sector is to be ready to recognize that a project has had 'potential' but that, with better information, it is just not feasible to proceed into production.

The market has worked out the feasibility of this little black duck.

IMHO DYOR

No.	Vol.	Price($)
4	731925	4.0¢

No.

Vol.

Price($)

731925

4.0¢

Price($)	Vol.	No.
4.1¢	760271	12

Price($)

Vol.

No.

4.1¢

760271

No.	Vol.	Price($)
3	719925	0.040
24	2445434	0.039
13	1894657	0.038
4	1330812	0.037
10	1425619	0.036

No.

Vol.

Price($)

719925

0.040

2445434

0.039

1894657

0.038

1330812

0.037

1425619

0.036

Price($)	Vol.	No.
0.041	511999	5
0.042	1384013	12
0.043	659666	10
0.044	521887	8
0.045	268269	4

Price($)

Vol.

No.

0.041

511999

0.042

1384013

0.043

659666

0.044

521887

0.045

268269

(20min delay)
Last 4.0¢		Change -0.003(6.98%)		Mkt cap ! $66.52M

Open	High	Low	Value	Volume
4.2¢	4.3¢	3.9¢	$753.4K	18.59M

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