Updated Valuation and SWOT - RSG, page-61

I think that the scale factor can actually be adjusted for the prevailing industry average that may allow for a measure that may be comparable against peers and taking into account the overall industry performance. I think I have said at the outset that this metric is really more used as a relative measure, not an absolute measure. However, further refinement can be made taking into account the factors we have discussed before. In the end, I do not make my investments solely on this measure. I consider the company's reserves and their recent operating cash flow generation as well as consider qualitative management and production/development factors. This metric is the first port of call to let me know which companies I may want to pay attention to and then I delve more closely into them to see what is underneath the numbers.