Aust. Miners Gain In Zambian Move

Press, Volume CVIII, Issue 31661, 23 April 1968, Page 23

Aust. Miners Gain In Zambian Move

(N.Z. Press Association—Copyright)

LONDON, April 21

Australian mining shares are likely to benefit from last week’s dramatic statement by Zambia on restrictions of foreign investment, the “Financial Times” reported.

The news that Zambi; was to clamp restrictions on overseas concerns operating in that country, including a ceiling on the amount of money that might be remitted abroad for dividend purposes, hit the Zambian copper shares. The newspaper said that the suspicion with which mining investment is viewed in any part of Black Africa will now be heightened. Australian Benefit The Australian sector in particular was likely to come back into the limelight and has already been showing distinct signs of doing so, it said. “That share market catalyst, Western Mining Corporation, has begun to lead the way once more,” the newspaper said.

s “Since Thursday of the - week before last the shares i have recovered 16s 3d to 87s - 6d.” / The paper said that the 1 shares looked ripe enough for , a new advance especially if r the group's active exploration programme turned up somet things that might stimulate - the market. J End of Year Caution “The time for caution is likely to come along towards the end of the year when the i 1967-68 results will be due. ? “They will tend to look 1 modest in relation to the ; share price and may thus I bring sharply to mind that a buyer at current levels is per- - force looking forward to the - early 1970 s before his specuI lation becomes an investment - in the true sense of the word.” Gold Fields The “Financial Times” reported that in London a wellknown Melbourne broker. Mr R. Clarke, was enthusiastic about the prospects for the ' Gold .Fields group’s Associated Minerals Consolidated beach sand project which had just initiated further expansion of its zircon and rutile output through the starting up of a 1500 tons an hour dredging plant on an island off South Queensland. “This should help to put up zircon production appreciably even in the year that ends in June,” the newspaper said. “Looking further ahead it is estimated that by 1970 profits may be not far short of double the 1966-67 level, a prospect that is underwritten to a large extent by forward contracts held for more than 500,000 tons of minerals worth some $37m.”