Peko-Wallsend Inv. Profit Higher

Press, Volume CVIII, Issue 31585, 24 January 1968, Page 17

Peko-Wallsend Inv. Profit Higher

(N.Z. Press Association —Copyright) MELBOURNE, January 23. Peko-Wallsend Investments, Ltd, would raise its interim dividend from 9 per cent to 11| per cent after earning higher profits in the six months to December 31, the company’s directors announced yesterday.

The results exclude those of Mount Morgan, Ltd, which will report separately on the half-year’s operations. Peko’s dividend lift is in line with predictions made when the company initiated its approach to Mount Morgan.

The directors indicated that the annual dividend would be raised from 18 per cent to 221 per cent and would be tax free.

The latest 5.625 c interim payment will be tax free in shareholders’ hands. In 1966-67 the interim 4.5 c was 1c tax free and the final 4.5 c was 3c tax free. The total 9c or 18 per cent was covered by 45.1 per cent earnings on ordinary capital. Copper Prices Yesterday’s statement said the over-all activities of the group, excluding Mount Morgan, were maintained in the December half at levels which compared favourably with those of the previous corresponding period. Net profit was higher. “The continuance of high prices for copper was a major factor contributing towards this result, which included dividends totalling $340,000 from Rutile and Zircon (Newescastle), Ltd,” directors said.

Rutile and Zircon is jointly . owned by Peko and a subsidiary of the Kathlee Investments Group. The company paid an interim $555,000 for the Decem-

ber half compared with $645,000 in the previous full year.

The directors indicated at the time that the final dividend would be of a lesser amount. Rutile and Zircon yesterday announced the signing of

an agreement with a privatelyowned group under which production will be boosted. The Harrington mineral leases of N.S.W. Rutile Min-

ing Company Pty, Ltd, are to be brought into the mining and treatment operations of Rutile and Zircon.