New Rules to Impact the Lease/Buy Decision
September 2014 by Mark E. BattersbyWhether to buy or lease is a question facing many small-scale operators and prospectors even as credit becomes more readily available. While there is no one correct answer that fits every mining operation or business, compared to the simplicity of buying, leasing is far more complicated and may be getting more complex.
While many prospecting or mining operations don’t have sufficient profits to benefit from accelerated write-offs or even the full 100% “bonus” depreciation write-off, other options can be equally rewarding.
The most important question, of course, is when these deteriorating fundamentals (positive for the precious metals) will overcome the lengthy deterioration in the long-term trading charts for gold and silver and their associated mining shares.
The extensive cost reductions now being put in place are not just a short-term reaction to the recent drop in gold prices...
…the general investment community has turned away from mining shares over the past three years and moved whole-heartedly into conventional investments.
The Bawl Mill • Ask the Experts • Ask the Experts • Taking on the EPA, Sasquatch, Ratchilla and Gold Dredging • Gully Prospecting and Mining • Wilfley Tables—Repair, Rebuild & Set Up • Designing and Evaluating Placer Gold Recovery Plants • Finding Streams of Gold • This is Why You Check Your Tailings • Lode or Placer: What Difference Does It Make? • There's a First Time for Everyone • Appeals Court OKs Permits for Upper Peninsula Mine • Melman on Gold & Silver • Mining Stock Quotes and Mineral & Metal Prices