MIM PROFIT DECLINE

Press, Volume CXII, Issue 33063, 2 November 1972, Page 19

MIM PROFIT DECLINE

Major addition to reserves

(N.Z. Press Assn.—Copyright) BRISBANE, Oct. 31.

The chairman of MIM Holdings, Ltd, (Mr J. W. Foots) told the annual meeting that unless there were a marked improvement in the economy, the company’s profit would not exceed last year’s figure. He said that the profit would approach last year’s amount of $25.9m, which compared with $38.0m in 1970-71 and $55.4m the previous year.

In the long-term, metal prices would reflect to some extent the average world cost of production and marketing and with the preparations the company had made for the future, it would bring in improved earning rates, Mr Foots said. Negotiations for a new industrial agreement are proceeding, and increases in award rates proposed by the company would, if accepted by the unions, increase the cost of production by more than s2m. Prices at which the company’s products were sold were determined by overseas market conditions and increases in labour costs could not be passed on, Mr Foots said.

Major new copper ore intersections in the Mount Isa mine would lead to a significant extension to the life of the mine, said Mr Foots. He told the meeting that a drill hole had intersected two major widths of copper ore.

These were 133 ft of 2.73 per cent copper and 99ft of 3.04 per cent copper at about 3100 ft below the surface.