Box 3–6: Formulas for Replacement Cost Method
total mineral reserve value_t_ = V_t_
{0.375 [ p_t_ - a_t_] - Z_t_/q_t_} R_t_
additions_t_ = {0.375 [ p_t_ - a_t_ ] - Z_t_/q_t_ } *A_t_
depletions_t_ = {0.375 [p_t_ - a_t_] - Z_t_/q_t_ }*q_t_
revaluationst_t_ = V_t_ - V_t-1_ + depletions_t_ -
additions_t_
where Z_t_ = value of exploration and development expenditures in year t, and other variables are as
defined in Box 3–3.