Proved Reserves

DEFINITION of 'Proved Reserves'

A classification used in mining sectors that refers to the amount of resources that can be recovered from the deposit with a reasonable level of certainty. Proved reserves is a common metric quoted by companies such as oil, natural gas, coal and other commodity-based companies.

Also known as proven reserves.

BREAKING DOWN 'Proved Reserves'

Proved reserves are usually determined through extensive geologic and engineering studies. It can take mining companies several years to complete a study to determine the amount of proven resources. A company that increases its level of proven resources over time generally sees a favorable response in the price of its shares.

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