THE title of this paper covers a very wide scope, and a great deal, of ground would have to be traversed before a complete and exhaustive survey could be made of all that is implied by the term "analysis of mining statements." With the time at the writer's disposal it is proposed to confine attention to two phases only of the question, and to deal briefly with- 1. The connection between technical work (as shown in the milling statement) and financial results. 2. The relation of costs to profits in mining. At the outset it has to be stated that there is a danger of those who are engaged in one section of an extensive business, such as the mining, treatment, and smelting of silver-lead ores, becoming circumscribed in their views of things, of looking at the business out of focus, and thus acquiring wrong impressions and mistaking the part for the whole. Thus, we are prone to gauge the efficiency of the work by low costs or by high-mill recoveries, whereas a little consideration might prove that, looked at from the true standpoint, these two things might mean lower net profits and bad policy. This brings us to the point it is desired to particularly emphasize- That all mining operations should be considered in the light of the ultimate net profit, and that all work should be gauged on that basis.