Mines and finance:
The property of a mine can take various forms. It can belong to an individual, like those of King Solomon. They can belong to the state in various legal forms, like the coal mines. With the rise of the industrial company a form of property developed: the joint stock company. The property is divided between a number of people, which can be important. In this last unquestionable case will have only one negligible part of the capital. Their right of ownership will be rather theoretical. In practice it will be limited to box the possible dividends, to take part once per annum at a general assembly, to benefit from the possible valorization of the action.
In France since the Eighties the titles are dematerialized, i.e. that they are represented any more by no material support. They exist only in the shape of lines in computer files.
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Titles become for a reason where another sans.valor can be collected. The collection of the old titles is called the scripophilie. In the countries of English language the word employed is scripophily. These words appeared in the Eighties. During a certain time the word scripophilie was in competition with "scriptophilie", but the use imposed the first. As for any collection the collectors can privilege a topic. The mining titles are one. The collection of titles referring itself to the fluorite could be a specialization inside a very vast topic. A title is generally composed of two parts, which can make only one where to be in two parts. The body of the title called sometimes the coat, is in fact the title in him even, materialisation of the right of ownership. One second part is the sheet of coupons. The coupons generally carry a number, sometimes a date of detachment. The payment were characterized by the detachment of a coupon. With the joint of the body of the title and sheet of coupons often the heel was. When the sheet of coupons was exhausted in exchange of the heel it was replaced by a new sheet of coupon. That was called the renewal of coupons. This new sheet was often stuck by an edge to the stripped title of coupons. |
The principal types of titles which the collector can have between the hands are the actions, the obligations, the shares of founders and the founder's shares.
The actions are a right of ownership on the capital. They generally have, but it is not an obligation in all the countries, a face value. It generally corresponds to the amount of the capital paid-up with the creation of the company. There are also deferred shares. The company refunded the amount of the initially versed capital.
The obligations are materialisation of a credit. A company will emit a bond. Its amount will be divided and materialized by a certain number of obligations having each one a face value corresponding to their quote share in the loan.
| The shares of founder were generally allotted to the creators, where with the first shareholders. They was very speculative titles. In general the statutes envisaged a certain percentage of the benefit to the carriers of shares, on what remained to be distributed after a first payment to the shareholders and a first appropriation to the reserve. This participation of about 20 to 30 percent, often 25 could appear important if the company developed because it were referred to a small number of shares, which was fixed, whereas other actions could be emitted. On the other hand in period of difficulties they passed after the actions. Another point reinforced the speculative character. They did not have the voting rights and could not take part in the management of the company. Temptation was sometimes large for the shareholders to be useful liberally and to take a little more than their share of the benefit. To avoid these conflicts the shares could be the subject of repurchases private or conversions into actions. In this last case one needed the agreement of the assembly of the shareholders and that of the carriers of shares. The law prohibited in France the creation of shares. The only ones which exists are a survival from the past. With the dimension of the Paris Bourse two lines of shares remain whereas there were of it several hundreds to the last war. It should be noted that the shares generally present a rebate on their theoretical value such as it would come out from a calculation only based on the rights for the benefits. The absence of voting rights has a price. |
 ACIERIES of PARIS and OUTREAU Company having exploited the ore deposit of Chaillac |
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The founder's shares are titles with the characteristics very close to those of the shares of founders. The principal difference is that they had often been created during the life of the company, and not with its creation. It often acted of a crucial stage, where the survival of the latter was concerned. An example among other possibility is a painful recapitalisation. The company lost to it quasi totality of its capital. Only active the remainder are incorporeal. The old actions become almost sans.valor can be cancelled, partially where completely. New shareholders recapitalisent the company. To satisfy the former shareholders of the shares were sometimes emitted, which could be comparable with a no protest clause to better fortune. All the cases were possible. As for the shares of founders the French law prohibited from now on the emission of founder's shares. |
Marginal mines and the dream of the small-time speculator:
If my school memories are good, first A to have written on the marginal mines is a brilliant economist knowing to appreciate with moderation the wine of Portugal.
Let us take a metal or an ore of which the unit is negotiated to 300. For a rich mine where the production cost is 200, the benefit per produced unit will be 100. For a poor mine where it is 295, it will be 5. The price of this metal oscillates about regularly around this average price on which it is centered. The mines lowest in exploitation will have as cost price this price of 300. They are called marginal mines. By extension this name indicates all the mines to which the cost price is close to the price of the market. The value of our two mines will show the profit capacity, while holding account of the lifespan, and the possible allowance for risk. It is possible to speak about the total valorization of the mine or this same valorization brought back to an action, obtained by making division by the number of action.
It is there that the marginal mine allows the most insane dreams. Let us imagine that for our two mines the course of the action is of 10 euros. They can have very well the same course at the beginning of our assumption. The course reflects the value of the mine and its capacity profit, balanced by its life expectancy and brought back to an action.
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That pass-you it if the price of the unit of extracted metal passes to 400 and qu all is indicated that it seems to want to stabilize itself on this level. The rich mine which gained 100 per produced unit will gain 200. The poor mine 105. Who will grow rich. In the case of the rich mine the earning per share will double. If one discounts a stabilization on this level the price of the action more or less will double. For the marginal mine the earning per share will be multiplied by 21. At the same time certain ores with low nonprofitable content for a price of 300, will be it to 400. The course can very also be multiplied him by 21. In practice it will be 15, to hold account of the risk, but they will be perhaps 25 if the price seems to be stabilized and that the increase in the value of the reserves is taken into account. The action leverage perhaps important. |
Naturally with the Stock Exchange there are two directions. One can starting from a pretence of stabilization to 400 total 300 very well, even to 290 where 280.
This kind of mechanism made dream of many small-time speculators. It was enough to be in the good direction to gain much money in a few months. Naturally this kind of things occurred in general only when nobody where almost did not expect it. To have chances it was necessary when the price was stabilized on a bottom grade, to constitute a wallet of marginal mines and to have the sufficiently solid patience and nerves to preserve it. The courses of these actions which were often penny stocks could indeed vary the simple one with the double, then return to the box departure. It was also possible to seek to take the train moving, but station with the false starts.
Mines of the dream to the nightmare:
The
mines cause the dream, as well with the Stock Exchange as on the ground
where the prospector dreams of the fabulous seam. The hidden face is consisted
the many dramas related to the mine. An example among others: Gold. Sometimes
it is necessary to go to seek this metal with great depths where it hides
in the form of seams low thickness. Heat is suffocating. Even if all the
precautions are taken work remains dangerous. For a large producer country
of which it was the principal source of currencies, the cost was terrible:
a death per ton of gold extracted. Was necessary it to stop the extraction,
impossible while taking heavy a tribe, the mine made indirectly live several
tens of thousands of more people, and of others still. There was always
the possibility of reinforcing safety, but considering the geological
configuration arrived one moment when one could not make much more.
This human cost seems dramatic. However it was at one time well near ridiculous compared to what the future was to hold to these minors. The latter often lived far from their family. The men living far from their wife are sometimes prone to temptations. A terrible evil watch for them for little that they make some imprudences. Of return on their premises they transmit the terrible disease. A true hecatomb strikes certain mining populations, without any common measurement with certain dramas of the past.
Sometimes dream with the nightmare, it does not have a long way there. This is particularly true for the diamond or gold mines which often make dream more than the other mines. The metal of the Gods, which imprisoned the sunlight its dimensioned obscure made dramas and of suffering. When we have between the hands of old actions of mines it is a digest of these dramas, but also of the most insane dreams which we hold.
Jean-Claude
URAN
Email:
Jean-claude.uran@spathfluor.com
Internet site:
J.C.Uran
