Mt Morgan Interim Profit Lower

Press, Volume CVIII, Issue 31587, 26 January 1968, Page 21

Mt Morgan Interim Profit Lower

(N.Z. Press Association—Copyright) SYDNEY, January 25. Mount Morgan, Ltd, now a subsidiary of Peko-Wallsend Investments, Ltd, earned substantially lower profits in the six months to December 31.

This was foreshadowed by the directors in the 1966-67 annual report and at the annual meeting last year, according to the Mount Morgan directors’ interim report. The interim dividend however will be held at 10 per cent. The full distribution in 1966-67 was 22} per cent covered by 66.6 per cent earnings on ordinary capital. The company’s results were not consolidated with PekoWallsend for the December half. As previously reported, the Peko group lifted its half yearly result. In yesterday’s interim report from Mount Morgan, directors said the lower result reflected reduced grades in the mine and lower average copper prices. Firming Expected “Currently copper prices are strong and an improvement in ore grades is expected over the last quarter of the financial year,” they said. As previously reported, directors are expecting a return to normal grades in the

mine for the full 1968-69 year. At the annual meeting last October, shareholders were told that prices received for the company’s copper had been 17 per cent lower in the first quarter than in the same period of 1966. A firfiming in prices was expected as a result of the United States copper strike.