C.G.F.A. Lifts Dividend After Strong Gains

Press, Volume CX, Issue 32391, 2 September 1970, Page 22

C.G.F.A. Lifts Dividend After Strong Gains

Consolidated Gold Fields Australia, Ltd, has again increased its dividend rate after another strong gain in earnings for the year to June 30.

The final dividend will be 8 per cent, or 8c a share (including 6c tax-free to public shareholders) making 15 per cent for the year. The previous year’s rate was lifted from 11 to 12} per cent (12)c a share) of which 6|c was tax-free.

Group net profit for the year rose by $3,662,539, or 42.4 per cent, to $12,302,081. This follows gains of $3,251,814 for the previous year, $1,273,023 for 1967-68 and $1,213,363 for 196667. The earning rate improves from 37.3 to 45.4 per cent, on paid capital increased by the share and cash take-over of Western Titanium N.L. late last year. Western Titanium earned $1.3 million in its latest year (to January 31). Its net profit for 7} months could have helped Gold Fields group profit by about $700,000.

Gold Fields group of listed subsidiaries also earned much greater profits this year. The best gains were achieved by the Mount Lyell Mining and Railway Company Ltd, (with a rise of $2,959,000) Commonwealth Mining Investments, Ltd, ($900,000), Renison, Ltd ($462,000) and Associated Minerals Consolidated, Ltd ($353,000). Profit of the Bellambi Coal Company, Ltd, fell by $177,000.

Mount Goldsworthy These figures indicate that the amount of profit taken into the group result from the Mount Goldsworthy iron ore operation did not grow as quickly in the latest year as in 1968-69. Goldsworthy’s contribution to the 1968-69 group result increased by $2.3 million, and was the largest factory in that year’s group improvement.

The latest result is after tax at $9,567,692 (up $3,926,663) which includes current tax $2,844,357 (down $377,893) and deferred tax $6,723,335 (up $4,304,556). The directors say that the charges for income tax on the operating profit for the year have been arrived at after making due allowance for the tax rebates on subscriptions to oil and mining exploration companies, and on dividend income and for certain nontaxable mining and other income.