WAIHI MINE

Auckland Star, Volume LXIII, Issue 134, 8 June 1932, Page 4

WAIHI MINE

ANNUAL MEETING. CHAIRMAN'S REVIEW. (From Our Own Correspondent) LONDON, May 5.

In hie address to shareholders at the annual meeting of the Waihi Gold Mining Company in London to-day, the chairman of directors, Mr. A. M. Mitchieou. said he was sorry to announce that developments at the mine had not been so good as they were last year. The amount of ore in the reserves had been, on the whole, satisfactorily maintained, but the reduction of the average assay in the general reserve to 32/ on the mine valuation was a disquieting feature, and would be very serious if they had not the advantage of the premium of gold. No openings had presented themselves for development work on a large scale, and the reserves had to suffer in consequence. The effect had not been so con6picuoi:s in the year under review, but a depletion and deterioration of the reserves, however, had to be faced. At present it was offset by the gold premium. Heavy Taxation.

In a reference to income tax Mr. Mitchison again mentioned that it was the gold premium which enabled the company to follow its present course. For many years New Zealand income tax on itho company had been assessed on half the dividends paid, and Inst year the assessment amounted to £13,947. In October last year it had become known that a change would be introduced in the Supplementary Finance Act, and that in the future New Zealand income tax would bo levied on ifctae full Waihi dividends instead of on half as hitherto. As a result the company had to provide £54,116 instead of £13,947 as anticipated. Of the £54,116 a considerable portion was in respect of past years, and would not be recurring unless new income tax charge* were imposed, but £29,010 must be regarded as a figure likely to be recurrent as long as the present dividends were maintained.

The increase of £15,000 constituted an additional serious burden on the company's operations, and since the report was drafted advice had been received that it was proposed to increase the gold duty from 2/6 an ounce to 3/6 an ounce, which would entail an additional charge upon the company of about £4000. Horahora Payment. After reviewing events in connection with the reduction of wages and salaries Mr. Mitchison said the money due from the New Zealand Government in payment for the Horahora hydro-electric works fell due in November last, but as financial conditions had been in a state of chaos all over the world the company had been anxious not to do anything likely to embarrass the New Zealand Government in the slightest degree. In November the company was ready to postpone the payment of the Horahora money for j three years, and it understood the Government would be glad for that to be done. There had been a little difference of opinion about the method of settling the form of the new contract postponing the payment, but he had no doubt the difficulty could be arranged satisfactorily. The Tin VenTure. The Pulcet Tin Dredging Company in Siam had made very slow progress, and there had been much delay about the titles. If tin were commanding a high price in the market the present delay would be extremely annoying, but it would probably prove better for the company that it should not be adding to the overproduction which existed at present. In conclusion Mr. Mitchison paid a tribute to the New Zealand representatives of the company. "During the year," he said, "special ability and energy have been required for protecting the financial interests of the company in New Zealand. T'-n task has been delicate j.nd difficult, and wo owe much to our representatives for the manner in which it has been performed."