COMMERCIAL C.R.A.’s Half-Year Profit Increases 20 Per Cent

Press, Volume CX, Issue 32387, 28 August 1970, Page 18

COMMERCIAL C.R.A.’s Half-Year Profit Increases 20 Per Cent

The group net profit of Conzinc Riotinto of Australia, Ltd (C.R.A.) —subject to audit—rose by 19.7 per cent to $9,038,000 in the six months to June 30, compared with the previous corresponding period. The latest full year’s profit was $22,948,000.

Gross trading profit improved by 12.2 per cent; depreciation was 14.5 per cent higher at $10,666,000, the provision for future and current taxation was 14.3 per cent up at $12,660,000, but earnings attributable to minority shareholders at $5,137,000 were 6.2 per cent lower.

The provision for taxation has been made at the increased rate of 47i per cent as announced by the Federal Treasurer in his budget speech on August 18.

Consolidated sales revenue was about 16 per cent above sales for the corresponding period last year, reflecting higher outputs by the mining operations at Hamersley and Broken Hill and from the

zinc smelter at Cockle Creek, New South Wales. In addition, there was an improvement in the prices received for lead and zinc. The directors have declared a steady interim dividend of 3.5 c on each issued ordinary share. The dividend will be paid on October 16 to public shareholders, out of tax-free funds. Shareholders to receive the dividend will be those registered on September 18 after adjusting the register in respect of registrable transfers and transmissions received at the company’s offices at First Floor, 140 Bourke Street, Melbourne, 231 George Street, Brisbane, 2 O’Connell Street, Sydney, 185 St George’s Terrace. Perth, and at the offices of Cooper Brotiters and Company, 78 Northbourne Avenue, Canberra City, up to 5 p.m. on that day. Whilst the net earnings after tax for the first half of 1970 were above those earned in the same period last year, the results were indicative

only of the relative earnings achieved in the period, and they could not necessarily be taken as a reliable guide to the results for the full year, the directors said. However, based on the current information in regard to likely trading conditions for the remainder of the year, and in the absence of unforeseen circumstances, net earnings (after tax) for 1970 are expected to show an improvement on those for 1969.

The development projects of C.R.A. and its associated companies continued to make substantial progress during the period. Hamersley’s programme to increase production capacity from 17.5 to 37.5 million tons a year by the end of 1973 is proceeding on schedule.

Expansion of the Weipa,

Queensland, bauxite facilities, and the aluminium smelter at Bell Bay, Tasmania, by Comalco are proceeding satisfactory, as is the expansion of the Gladstone, Queensland, Alumina refinery, the construction of the aluminium smelter at Bluff, New Zealand, and the erection of the alumina plant in Sardinia.

At Bougainville the port/ mine access road is well advanced and the permanent wharf at Anewa Bay portsite will be open to shipping in September. Shaft sinking and underground driving will commence shortly on the next phase of th 4 exploration of the Redross and Wannaway nickel prospects in the Widgiemooltha area of Western Australia, in which C.R.A. has an interest.