WAIHI GOLDMINING COMPANY.

Auckland Star, Volume XXVIII, Issue 179, 3 August 1897, Page 2

WAIHI GOLDMINING COMPANY.

ANNUAL MEETING.

(FROM OUR OWN CCRKESI'ON OK NT.)

At the annual meeting of shareholders in the above Company which w«is held in London on the 18th June, the Chairman, Mr T. Russell, C.M.G., spoke in an enthusiastic manner regarding the prospects of the mine. He said the position and prospects of the mine were better now than they ever had been, and tlie general state of the Company's utlairs were highly satisfactory to the i-harol.older.. Gieat progress had been made during the past year, which had been in every way the most active one in the company's history. "At every point," .*.... iMr l-.uts.ell, "our efforts have been •>ucce-.*ful. Bystanders have termed us iucky. We say our -"ucce.-**. has bet-n the reward of woil-Jirectod effort." Mr Ruaeoll mentioned that the most important development, between the main Welcome lode uiad ll«j Mnrtha reef was the new lode which had occupied their attention lor many monthe, unci it would be many more before the full valuo which it has added to the mine would be ascertained. It was of such magnitude and value that it would form an important feature in the future history of themine, and would ba frequently referred to. J.or this reason he thought they would agree that it des*-rved a separate and better name, and in view of the presont jubilee the directors had agroed that it should be known as the Victoria lode. There was one noticeable feature in connection with both tho Welcome and Martha lodeß, namely, that wherever the lode was widest the ore was found to be richest. They would therefore see that large additiuns had been made recently to the resources of the mine. The new pump had been pluced in position at the No. 2 shaft, and it was equipped with permanent appliances for sinking 1000 feet in depth. This machinery would be in working order within two months, and they hoped to hav6 levels 3 and 4 opened before the end of the year. The new Victoria, mill works were still in hand, and everything wu. being prepared tor the next movement, the starting of the new mill, which the directors believed would be accomplished before the end of the year. An to the proposals for the future, theChaiiman said that these new developments and other extensive works had entailed considerable expenditure, proporly chargeable to the capital account. No one would doubt the wisdom of the expenditure, which was fully justified by the satisfactory remits and by the prospects opened up. But it was not intended to make that expenditure a permanent burden on the property by creating new shares. That process would be very simple. They had only to issue 20,000 new shares to the shareholders at such a price as would give them £100,000 on capital account. This would be an easy method, and at the same time give the existing shareholders a large bonus, for the shares would readily command a higher price in the market. But objection to this course was that those shares once created could never be gob rid of; they would remain, and they should have to provide dividends in perpetuity upon them at the increased rate, which they hoped soon to receive. These dividends upon this increased capital would, to some extent, diminish the dividends on existing share capital. The directors had consulted some of their shareholders and friends, many of whom held their shares as an investment, and the prevailing opinion was in favour of making this debt, which would be a temporary one only. The money required could be obtained by an issue of debentures which they were advised they could place at a moderate rate of interest. The Company had large resources and the debentures would probably be repaid by tho money they would receive from -he Union Waihi Company on their present mill and works. They also held 100,000 Bhares in tho Union Waihi Company, and there was a reasonable prospect of obtaining money from this source which also would be available for the same purpose. But until money from these sources was available, assuming they issued debentures for £100,000 at five per cent., they would provide a large redemption fund of at least £10,000 per annum beside the interest, and thus in a few years wipe ont this debenture debt withoub encroaching upon the increased dividends which the shareholders reasonably expected. In conclusion, Mr Russell said that the outlook from every side was good, and the directors bad the greatest pleasure in congratulating the shareholders upon it.