BRUNNER COLLIERIES.

Auckland Star, Volume LXIX, Issue 233, 3 October 1938, Page 6

BRUNNER COLLIERIES.

LOSS LAST YEAR. INCREASED PRODUCTION COSTS. In its annual report for the year ended .Tune 30 last, the directors of . Brunner Collieries, Ltd., state that the net res,.lt for the year after providing £1915 4/ f or j interest 011 debentures, and £1573 0/8 for L depreciation on plant and equipment, is a loss of £3338 11/1 compared with a profit of £3805 5/6 for the preceding year. The recession is due to increased production costs and reduction in output, the principal increases being wages £2671 . /10, maintenance £1335 1/3, and employes liability insurance £026 18/3. A „,'f „ increase was obtained in the selling pilce ot coal, but owing to competition of Mate and other mines the increase secured costs lent to offset the advance in Output was 50,873 tons, a decrease of j 16o_ tons 011 the previous year OverIll'/'- a reduction of £259 . defect 111 the niaiu boiler necessitated the installation of two new boiler'l • Hums, and during the period of replace I mcnt the output was adversely affected. Although the result for the year is disappointing. it hag been caused by factors quite beyond the directors' control. Since June 3Q the output has increased, and a coal cutter has been ordered, which it is anticipated will reduce mining costs. I As a result of negotiations with the debenture holders the debenture issue has been extended for a period of 10 ™ ar ?ai ron l II' e du , e d ? te of November JO, 1938. at the reduced rate of interest of 5 per cent for the first five vears. This will result in a saving of interest of £419 per annum. CAPITAL ISSUE. GOLDEN CROWN MINE. PROPOSAL OF DIRECTORS.

A proposal to increase the capital of the l.o.ilen Crown Gold Mining Company, No Liability, ie to be put before sha:eholders at an extraordinary genera! meeting. If the proposals are approved the company's capital will be increased from £20,000 to i2.>,000 by the creation of 50,000 additional ordinary chares of 2/ each, to be ottered at par. In a circular to shareholders the dir tore atate that in the annual report at the annual meeting last August it j explained that whilst development w>, had been proceeding steadily and thai periodic crushing had been made from ore recovered from such work, the battery cotild not be kept, continuously running until the No, 2 level wai completely cleared out and rethnbered and connections made up to the Golden Crown level. Au application wae made to the Government Mines Department for a loan to complete these works. The mine wae examined and sampled by the Department's officers and engineers and the Department offered a loan, thus confirming the directors' faith in the project. "Unfortunately the Department has only 1 offered a loan of £ 1600 for which security in the form of a debenture over the company's assets ie required and in as much I as this sum cannot complete the works the directors feet that the matter should be dealt with by the shareholders before any charge ie given over the aaeeta for a turn too small to aee the works through." The directors consider that the best method of financing the works ie through the shareholders themselves, who are invited to support the resolutions and to take up the shares offered. DUNLOP-PERDRJAU CO. WHEEL MANUFACTURE DEFERRED. The chairman of the Dunlop-Pyrdriau Company, Limited, Mr. W, A. Watt, said at the annual-, meeting of shareholders in Melbourne recently, that, because of the difficulty of ensuring a supply of suitable steel in Australia, the directors had deferred a proposal-to manufacture wheels and rims for niotrfr vehicles. Mr. Watt eaid that the board had decided, that before proceeding further in beginning production of tyre oord material. it would review the proposal, after discussion with the Commonwealth authorities.