COMPANY AFFAIRS.

Auckland Star, Volume LXIV, Issue 150, 28 June 1933, Page 4

COMPANY AFFAIRS.

WASH I GRAND JUNCTION. LESSENED ORE RESERVES. BOARD'S FUTURE POLICY. In bis annual address to shareholders, Sir. W. I'. Uauvain, chairman of directors of the Waihi Grand Junction Gold Company, in reviewing operations for the year ended December 31, said that during the whole of the past year they had enjoyed the benefit of the premium on gold, which had amounted to approximately £1 14/ per ounce, and in consequence ot this they were able to show an increased lVeuue, notwithstanding a considerable reduction iu mine valuation of the ore treated in 1032, as compared with 1931. Had it not been for this premium, the results obtained would bear unfavourable comparison with those of the two previous years. At the end of the year the ore reserves showed a reduction of 7242 tons, and now stood at 15,884 tons. In addition to this reduction in tonnage, they had to record a reduction in mine valuation of these reserves from 34/9 to 31/0. To add to their difficulties, they were this year confronted with an export tax on gold, and in consequence the general position and the future programme had necessitated their earnest consideration. Since 1020, when the agreement between the Waihi Company and their company was finalised, development had been carried out in a thorough manner. Their expectations, based on the information available at the time the agreement was negotiated, had been fully realised, but if they were to maintain the ore reserves at a satisfactory figure it was essential that further development work should be undertaken. An examination of the last two balance-sheets would show that they j had arranged their finances with that end in view. They must thoroughly explore those portions of the mine where there were indications that there might be a possibility of opening up ore of payable value. The chairman also explained what exploration work was to be undertaken, and added that it was deemed advisable to open a dividend equalisation account with the object of endeavouring to maintain, for as long a "period as possible, the present rate of distribution during the time that further exnloration work was proceeding.