Proved Reserves

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Oil Price to Natural Gas Ratio

    A mathematical ratio comparing the prices of crude oil and natural ...
  2. Primary Reserves

    The minimum amount of cash required to operate a bank. Primary ...
  3. Contemporaneous Reserves

    A form of bank reserve accounting that requires a bank to maintain ...
  4. Assay

    The process of analyzing a physical sample to determine its composition. ...
  5. Precious Metals

    A classification of metals that are considered to be rare and/or ...
  6. BUGS Index - HUI

    An acronym for "basket of un-hedged gold stocks". The BUGS index ...
Related Articles
  1. Commodities: The Portfolio Hedge
    Active Trading

    Commodities: The Portfolio Hedge

  2. Natural Gas Industry: An Investment ...
    Forex Education

    Natural Gas Industry: An Investment ...

  3. Strike Gold With Junior Mining
    Economics

    Strike Gold With Junior Mining

  4. Does It Still Pay To Invest In Gold?
    Options & Futures

    Does It Still Pay To Invest In Gold?

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center