SULPHIDE FIND Consolidated Brick shares up $1.30

Press, Volume CX, Issue 32450, 10 November 1970, Page 20

SULPHIDE FIND Consolidated Brick shares up $1.30

. (New Zealand Press Association) . * AUCKLAND, November 9. Enthusiasm returned to the Auckland Stock Exchange today when Consolidated Brick shares went up $l3O in the wake of rumours and a later report that the company had a sulphide find near Kerikeri, with elements of platinum, palladium, gold, and silver.

The shares closed at $3.90, still $1.25 above the last sale in Auckland last week after a drop to $3.75 in mid-afternoon.

Because of the reputation of the company and the conservative tone of the announcement, it is likely that the shares will rise still further.

However, it is likely to be six months before assays are assured and 12 months before it can be established whether the area can be mined economically. The rise in Consolidated

Brick shares occurred immediately the exchange opened, the first price being $2.80, compared with last week’s closing level of $2.65. As prices continued to climb past the $3 mark, with rises sometimes of 20c, the Stock Exchange asked Consolidated Brick for an explanation. A message from the company was read to the exchange at 11.10 a.m., saying that a statement would be made by the directors in Wellington at noon.

This statement was received during the luncheon recess at the exchange, which met in the afternoon fully informed of the company statement and promptly lifted the share 20c to a top price of $4. The leakage of information which prompted the rises surprised the directors of Consolidated Brick, who were waiting in Wellington to inform the Minister of Mines of their prospecting success. Stock exchange trading continued busily through the afternoon, including the company’s notes which rose to $2.40 compared with Friday’s price of $1.60. It was the busiest trading on the exchange in months and the general enthusiasm

of brokers and the established nature of the stock made it the most significant price boom in years. “The shares look very good at this price,” said one broker. “This is the sort of statement one would expect from a good sound company of this sort.” The share trading was heavier in Auckland than in other centres. Nowhere else did the price touch $4.00, and south of Wellington the shares went over $3.00 only twice. The previous high of the shares this year was $2.80, recorded in July and again in October. [Earlier report.—Page 26.]