C.R. A. markets depressed after year of growth

Press, Volume CXII, Issue 32873, 23 March 1972, Page 15

C.R. A. markets depressed after year of growth

(N.Z.P.A.-Reuter—Copyright) MELBOURNE, March 22. The immediate international market outlook for Conzinc Riotinto of Australia, Ltd, particularly for iron ore and aluminium is depressed, the directors say in the annual report.

However, since the agreement on currencies in December, base metal prices have begun to improve and reflect the strengthening in economic activity in the United States, they add.

The chairman (Sir Maurice Mawby), says in his report tha* 1971 was a year of strong physical growth for C.R.A., but it ended'with a growing uncertainty in markets for its products.

Output of most products was higher than in 1970 and planned expansion of existing facilities and the construction of new projects continued on schedule.

On Wagina Island, in the British Solomon Islands protectorate, testing has established about 28m tons of bauxite averaging 46 per cent alumina with low silica. Feasibility of producing from this deposit is being studied.

At Wenlock River, in Cape York Peninsula, preliminary testing indicated about 45m tons of medium grade bauxite with high silica. Consideration is being given to whether further testing is justified.

Investigations to determine feasibility of producing from the Tarong steaming coal deposit continued. Underground work and metallurgical testing of the nickel deposit near WidgieMore commercial news on page 16.

mooltha confirmed estimates based on drilling results, the directors said.

Deep drilling at Browns copper-lead-zinc prospect, near Rum Jungle, Northern Territory and in Queensland at the Dugald River prospect, revealed only further low grade mineralisation. The accounts, compiled on an “equity accounting” basis show sales to external customers by C.R.A. and . its subsidiaries ' of $223.6m ($184.8m). The operating profit was $60.9m ($51.6m). The company’s income from investments, including those in associate companies was $12.5m ($10.7m). The groups net earnings was $26.1m ($24.3m). Together with C.R.A.’s share in the net earnings of associate companies in excess of

dividends received net earnings amounted to s3om ($29.6m). The company’s total assets increased dramatically from $810.4m last year to $1222.9m.

This was mainly because of an increase in the value of property, plant and equipment from $556.6m to $909.1m and an increase in cash, bank balances and securities from sB2m to slo3m.