C.R.A. Excited Over Bougainville Ore

Press, Volume CIX, Issue 31942, 20 March 1969, Page 18

C.R.A. Excited Over Bougainville Ore

Conzinc Riotinto of Australia, Ltd, adopted a tone of excitement in its annual report about the huge Bougainville reserves that its chairman (Sir Maurice Mawby) terms the “great copper orebody.” He announced an increase of 260 million tons—to 760 million tons —in an estimated ore reserves there.

C.R.A. shareholders will have preference to the proposed public flotation by the new copper company which will run Bougainville, and they will benefit too by the good prospects of Hamersley Holdings, Ltd, in which C.R.A. is the majority shareholder.

terday that the C.R.A. report emphasised some differences between C.R.A. and its rival, 8.H.P., in capital raising and other strategies. Although B.H.P. and C.R.A. shares had been selling at around the same price range —s2o —over the past year, the editorial said, “B.H.P.’s new issue, more sensitive to shareholders’ prejudices than to what the market might be used for, is priced at $5 a share compared with C.R.A.’s $14.”

A feature of the C.R.A. balance sheet, the New Zealand Press Association says, is the higher market value of shares in subsidiaries, reflecting the rise in Hamersley share price. The value increased by $279m to $755m during the year. The group had already announced a rise of s2.7ra to $17.6m in its net profit. It said yesterday that trading profit had jumped $10.2m to 836.1 m, after 83.63 m was provided for exploration. Its total income rose by $31.5m to 8145.9 m and the 21.6 per cent increase was generated largely by a rise in the group’s exports. The directors announced a steady dividend of 16 per cent which will take 57.4 m. Depreciation was 40 per cent up at 515.8 m and tax doubled to 810.1 m.

ainville project in PapuaNew Guinea. The project is owned twothirds by C.R.A. and onethird by New Broken Hill Consolidated, Ltd, through Bougainville Copper Pty, Ltd, the expected operating company. C.R.A.’s involvement in aluminium and iron ore had already been detailed in the Comalco and Hamersley balance sheets, the chairman said. Earnings from the leadzinc division were lower than in 1967, mainly because of the loss of 30 working days and other restrictions on output imposed by the Broken Hill unions. Exciting Outlook i The “Economist” newspaper said last week that the outlook for Hamersley “is as exciting as for any mining concern.” Profit had almost doubled to $26.2m in 1968, it said, but this was only the beginning. Rising capacity and research success were increasing the company’s strength and the scarce public shares were sound. The “Australian Financial Review" said editorially yes-

Sir Mauricq Mawby said that $16.4m had been spent by the partners on the investigation of the giant Bou-