FACTS FOR INVESTORS.

Auckland Star, Volume LXVII, Issue 296, 14 December 1936, Page 4

FACTS FOR INVESTORS.

PROGRESS OF MOUNT LYELL. BEST FOR SEVEN YEARS. RISE IX COPPER PRICES. The ''Mount Lyell -Mining and Railway Company, Limited, earned a profit of £ 15T,290 in the year ended September 30. This is the best profit since' 1029, when - £324,130 was earned. In that year the average pricc of electrolytic copper was £83 1/4 a ton, compared with £40 14/8 for the year under review. The chief factor influencing the increase of £121,380 in the profit compared with that for the previous year was the higher average London price of electrolytic copper. The London price was £40 14/8, which compares with £33 8/4 in 1934-35. Another factor was an increase of £12,80S in dividends received from shareholdings. In the year under review these holdings returned £70,487. in dividends, equal to about 38 per cent of the profit earned. Following is a statement of revenue and profits for the last three years: —' 1034. 19.33. 193 G. -a £ & Avge. sterling price electro copper .... 34/15/11 33/S/4 40/14/S Revenue — Mine, etc... 356.750 094.450 774.710 Dividends . 54.530 37,880 70,490 Profit 0.370 05.910 187,290 Dividends ... — 35,730 155,000 The main features of operations in the year were:—(l) Intensive working of the low-grade.deposits by open cutting, resulting in the winning of 60 per ccnt of the total output by this means and a substantial reduction in the mining cost; (.2) the mining and treating of the largest tonnage yet recorded; (3) the largest copper production in any year from ore won in the same period: and (4) the further reduction in the net cost of producing and realising copper, despite the lower assay value of the ore treated and the higher rates of wages paid. The output of ore from all the company's mines was 670,400 tons, assaying 2.13 per cent' copper, compared with 580,900 tons, assaying 2.37 per cent for the preceding year. Of this total 345.500 tons were obtained from the West Lyell ■O and Prince Lyell open cuts. The following table shows the production for the last three years:— Year ended Sept. 30— 1934. 1935. 1930. Ore milled, tons 375.90S 504.241 665,422 Smelted, tons. 45,654 67,928 57,454 Production— - Copper, tons 7,154 13.966 12,707 Silver, oz. . 79.704 142.042 100,SSS Gold, oz. . . 4,052 7,532 7,015 Huge Ore Reserves. Further surface investigation of the lowgrade ore occurrences has added substantially to the ore reserves, and the Prince Lyell deposit has been included in the estimate. The ore reserves at September 30 were estimated at 5,825,000 tons, of an average assay value of 1.00 per cent copper, 0.140z silver, and O.Olfioz gold a ton. Details of the ore reserves arc as follow: — Tons. Tons. Tons. 1934.: 1935. 1936. North Lyell. 547,000 413.000 260,000 Ly'l Conistock 650,000 035,000 ' 534,000 Crown Lvell 350,000 244.000 230,000 RovalTharsis 2,600,000 2.400,000 2,300,000 West Lvell . 1,000,000 3,700,000 4,300.000 Lyell Tharsi's 200,000 201,000 201,000 Prince Lyell .—1,000,000 The net cost of producing and realising copper for the' year was £42 14/9 a ton, which compares with £43 1/9 in 1934-35 and £53 in 1933-34. Reports from the fertiliser companies in which the company holds substantial interests show that sales of fertilisers were higher than in the previous year, due mainly to the more extensive use of fertilisers for top-dressing pasture areas, , Commenting 0n... these figures the Melbourne "Argus" says that, provided the London price of electrolytic copper is maintained at its present figure of about . £49 a ton, or £8 6/7 higher than the average lor the company's last financial year, shareholders may look forward with confidence to a larger profit in the current financial year with the possibility of higher dividend distributions. ATlowing for the accrued dividend of .1/6; 'the shares at their present price of 37/ on a dividend basis of 2/ a year .'return 5.6 per cent. The : financial position of the. company is sound, as the following table of its accounts for the last three years shows: — ASSETS. 1934. i 935. 1936. Mines' 563.000 553.500 04L100 Plant, etc;.. 415.700 41G.G00 422.700 Railways .. 212.100 213.200 213.200 ' Shares 1,449,900 1,449,900 1,449,900 .• - Stocks, . ore, . ..." debtors, cash 325,400 437,500 560,500 Total .. 2,967,000 3,070,700 3,187,400 FUNDS USED. L i a b i llties, inc. divs. declared . 30.800 116,200 239,300 Reserves ... 1,377,200 1,404,500 1,398,100 Capital .... 1,550,000 1,550,000 1,550,000 Total . . 2,967,000 3,070,700 3,187,400 QUEENSLAND INSURANCE. DIVIDEND 'AND BONUS. Particulars of the profits earned and the proposed distribution of dividend and bonus by the Queensland Insurance Co. have already appeared in these columns. Balance-sheet items are now available, as follow:— Tear ended September 30. 1935. 193 G. 12 £ £ Net profits 105,0G7 108,173 116,153 Dividend, p.c. .10 S 8 Div., amount . 30>,000. 60,000 60,000 Jubilee bonus, 2J p.c — — 15,000 Jubilee bonus to staff — — 5,000 To reserve .... 50,000 50,000 25,000 To staff provident. assn. . — 5,337 5,505 Forward 41,90S 34,805 40,453 Losses 221,893 245,324 2G8,948 Charges . 165,135 177,742 182,072 Taxation 24,G53 31,307 21,420 To reserve— Unexpired risks — — 20,000 Premiums 453,718 497,893 541,730 Interest and rent 63»0G0 64,655 66,866 LIABILITIES. Capital paid up 500,000 750,000 750,000 Reserve fund . 400,000 250,000 300,000 Reserve for unexpired risks 310,000 310,000 330,000 Sundry creditors 337,292 325,04S 363,760 ASSETS. Government securities 549.931 938,647 1,039,97G Fixed deposits . 250,891 245,780 212,70S Municipal debentures 94,542 94,542 59,542 Shares 126,727 120,207 146,665 Freehold properties 165,361 167,332 136,124 Mortgage ..... — - — 20,000 Cash 65,446 40,638 73,900 Other 111,358 130,705 140,297 The liquid position of this company, always .well maintained, has been further strengthened. The three items, Government securities, municipal debentures and nxed deposits, represent over £1,400,000.