R.T.Z. RESULT" DOWN

Press, Volume CXII, Issue 32879, 30 March 1972, Page 15

R.T.Z. RESULT" DOWN

Copper prices 25 p.c. lower | (N.Z. Press Assn.—Copyright) LONDON. Mar. 28. Lower copper prices were i the prime cause, of a £17.8m or 20.7 per cent fall to £6Bm in pre-tax profits of the Rio i Tinto Zinc group, the direc-1 tors said in a preliminary | statement. Group sales in 1971 were ;£445.9m. an increase of £6.5m ion the previous year but costs , [jumped nearly £2om. The profit was also affected by currency realignments. The average copper price | '|in 1971 was 25 per cent lower) than in 1970 and because of I this a large proportion of the' 'group over-all profit decline; was the result of Palabora’s pre-tax profit being down bv ;£l4m.

The profit from the group's i lead and zinc operations fell by £l.Bm because of addi-i tional losses at the Avonmouth smelter. In the 1971 accounts, provision has been made for losses which will arise from the reorganisation of the group’s zinc smelting activities. After deducting future tax relief of £2.5m the charge to reserves is £l9m, which is intended to cover all likely contingencies, the directors said. Shareholders will receive a final dividend of 4p a share making a steady total of 6p for the year.