B.H.P. Slumps On Announcement

Press, Volume CVII, Issue 31499, 13 October 1967, Page 19

B.H.P. Slumps On Announcement

(N.Z, Press Atsociation—CopyriaMJ SYDNEY, October 12. Broken Hill Proprietary Company, Ltd, went to a new peak of 1540 c on the Sydney Stock Exchange this morning but came back after an announcement that coring had been discontinued in the Dolphin A-l well. In Melbourne, the share'closed at 1505 c after slumping to 1470 c.

Coring of the well was discontinued at 4088 ft after establishing a water contact well above this depth. At present the well is drilling ahead at 4365 ft.

B.H.P. opened this morning in Sydney slightly higher than yesterday’s close of 1495 c and quickly rose to a peak of 1540 c amid heavy trading. The shares were traded in London overnight at 1556 c. When the announcement was received, the shares quickly fell back, going as low as 20c below last night’s close but later firm to steady. Market capitalisation of the company has now gone far beyond likely income from the existing fields, the "Australian Financial Review” said today.

“More oil strikes will be needed to justify it, except inthe speculative day-to-day sense."

The newspaper said the market value of B.H.P. soared within 50c a share of s2ooom with a price of 15.10 c at one stage for shares selling for 500 c only last year. Assuming that oil and gas have been the big factors-be-hind the fast year's rise, the sharemarket now values'the oil enterprise at more than slooom compared with $646m for the steel venture before the oil and gas strikes. ' * “A round figure of s6oooxri

is estimated for the area dis, covered so far. “A rough figure to work on might be that 20 per cent of the value of the foil, and gas will gb out in profit, though not all in dividends, which will have to be shared equally between the companies. “Therefore, a rough guess could' be made that B.H.P profit from the>exlsting possible reserves may be around ssoom. Profit Rise By E.S. and A. Pntt Attn—Carnright) ADELAIDE, October 12. Consolidated profits of the' English, Scottish and Australian t Bank, Ltd, . totalled $4,164,065 for the year to JUne 30. the bank reports today. 4 This was an increase of 18.2 per cent on the previous year’s result. Total dividend for the year at 1( pnr cent takes $1,967,840. It includes a proposed final dividend of 6 per cent on capital increased to $21,084,000 in August by a one-for-five bonus issue.

Mr S. J. Douglas has been appointed secretary of Manthel Holdings, Ltd. He is a former Canterbury Rugby and athletics representative.