COMPANY AFFAIRS.

Auckland Star, Volume LXIX, Issue 4, 6 January 1938, Page 5

COMPANY AFFAIRS.

MOUNT LYELL'S FUTURE. COPPER PRICES UNCERTAIN. | ith regard to the outlook for our j mining under-taking, a factor which vitally ; atlects the profitable operation of our ; mines is the important one of the price of j copper, and the outlook just now regurdl big it is perhaps best described as uncerI tain, said Mr. P. C. Holmes Hunt, at the I annual meeting of the Mount Lyell Mining and Railway, Limited. As an indication of the course of the j copper market since the "(lose of our year, lie stated, that compared with an average price tor Electrolytic copper of £60 S 3 sterling for last year, the average for the month of October was £51 0, 9, for November £44 18/8, and for December £45 6 5. r J he world statistics relating to refined copper for the twelve months ended September show that from October, 1936, to April. 1937. consumption continued to exceed production, notwithstanding that outputs were being increased. From May onwards, however, production was in excess of consumption, and world stocks of refined copper, which had been reduced from 339.000 tons at the end of September, 1936. to "253.000 tons at the end of April, j had risen to 305,000 tons at the end of I September. 1937. The world capacity to produce copper is very large, and from the experience of the past few months one aspect stands out. namely, that any increase in demand can be rapidly taken care of by increased production. In October it was announced that those producers of copper outside the L nited States who, for about two years up to January last, restricted their output, had again agreed upon a measure of restriction with the object of adjusting production to consumption. The general industrial position in Britain is reported good, and it has now been confirmed that the bulk of the increase in copper consumption is due to greater industrial activity rather than to armaments. The position in America, however, has not been satisfactory of late. The domestic consumption of copper has fallen considerably, and in consequence outputs have been leduced. It would appear that efforts to rehabilitate industry in the I nited States can alone bring about improvement in consumption. Speaking broadly, concluded Mr. Hunt, the all-round conditions at present prevailing do not hold out the expectation of such a good result as tor the year just closed. While, however, one would like to see t'lcprice of copper at a figure a little higher than it is at present, there emerges the view that, given a maintenance of the present price, there is justification to look for a fair return on the capital invested in our enterprise.